Dow takes triple-digit plunge

? Wall Street succumbed to more selling Monday, extending Friday’s selloff in a volatile session that saw the Dow Jones industrials drop more than 300 points, rebound and then close down more than 230.

Analysts said the sharp swings reflected investors’ uncertainty after nine weeks of declines, including Friday’s 390-point plunge in the Dow. Mixed earnings reports affected specific stocks, but failed to give the market a lift.

Specialists Irwin Misshula, left, and Leroy Williams watch the numbers on their screens as they work on the NYSE trading floor. Wall Street succumbed to more selling Monday, extending Friday's selloff in a volatile session that saw the Dow Jones industrials drop more than 300 points, rebound and then close down more than 230.

“Emotions are running high right now, and a quick move to the downside can easily be replaced by a move to the upside and vice versa,” said Charles G. Crane, strategist for Victory SBSF Capital Management. “People are shooting first and asking questions later.”

The Dow closed down 234.68, or 2.9 percent, at 7,784.58, its third straight triple-digit finish and its lowest close since it reached 7,731.90 on Oct. 8, 1998. It was also the average’s first close below 8,000 since Oct. 14, 1998, when it finished at 7,968.80.

The Dow has lost 624.91 points in the last two sessions.

Broader stock indicators also retreated. The Nasdaq composite index dropped 36.50, or 2.8 percent, at 1,282.65, and the broader Standard & Poor’s 500 index slipped 27.91, or 3.3 percent, to 819.85.

The Nasdaq last closed lower on May 1, 1997, when it stood at 1,270.50. The last time the S&P closed lower was May 7, 1997, when it reached 815.62.

The volatility came a day after WorldCom filed for Chapter 11 bankruptcy protection, a move that was widely expected following the telecommunications company’s disclosure nearly a month ago of deceptive accounting practices. The stock rose 5 cents to 14 cents after WorldCom’s chief executive said he was optimistic the company would emerge from court protection within 12 months.

Although the WorldCom announcement was significant, analysts said it was not the primary driver behind Wall Street’s retreat. Rather, they said, investors fed up with corporate ethics and accounting scandals are staying away from the market.

Still, there were still some losses related to the news, particularly among WorldCom’s creditors. J.P. Morgan Chase fell $1.58, or 6 percent, to $24.52, while Citigroup dropped $3.96, or 11 percent, to $32.04.

Other stocks with steep declines included Microsoft, which tumbled $3.27, or 6.6 percent, to $46.29, and IBM, which fell $3.50, or 4.9 percent, to $68.50.

ExxonMobil slid $2.13, or 6.6 percent, to $30.27, while Williams Cos. fell 61 percent, down $3.15 to $2.01.