New York Wall Street's pessimism about earnings deepened Friday, sending the Dow Jones industrials down more than 220 points following more bad news from technology bellwethers EMC and Advanced Micro Devices.
The latest earnings warnings, combined with news of an increase in the June unemployment rate, exacerbated fears that second-quarter results might be even worse than expected and that a business turnaround will not happen before 2002.
"A lot of people had bought the idea that the worst was behind us. Obviously that's not the case," said Richard Dickson, a technical analyst at Hilliard Lyons.
The Dow fell 227.18 to 10,252.68, for a loss of 2.2 percent, extending its drop of the previous two sessions.
Broader stock measures also tumbled. The Nasdaq composite index closed down 75.95, or 3.7 percent, at 2,004.16 its fourth-consecutive daily drop, while the Standard & Poor's 500 index lost 28.65 to 1,190.59, or 2.4 percent, its third consecutive decline.
The losses made for a disappointing week for all three indicators. The Dow ended the week down 2.4 percent its seventh straight weekly decline while the S&P; dropped 2.8 percent. The Nasdaq suffered the biggest decline, sliding 7.2 percent for the week.
"The question is still when is the economy going to turn," said Todd Clark, co-head of trading at WR Hambrecht.
"With the EMC and Advanced Micro Devices misses being so big and really blindsiding the Street, it's caused people to say, 'I'm pulling bids and I'm not going to be buying right now.' "