Markets Continue Slide

September 20, 2001( - Stocks continued their downhill spiral on the fourth day of trading since terrorists devastated New York's financial district last week.

Investors, who had hoped that the effects of the attack had worked their way through the markets were disappointed, as new layoff announcements, profit warnings, and deteriorating profits and a string of negative news weighed sentiment down further, pushing already depressed markets to new lows.

Almost five stocks fell for every one that increased on the Big Board, while three fell for every one that advanced on the Nasdaq Stock Market.

At the closing bell,

  • the Dow Jones Industrial Average, led lower by Microsoft, General Electric and Disney among others, had fallen by 4.4%
  • the S&P 500 had lost 3.11%, and
  • the Nasdaq had lost 3.72% of its value.

Airline companies, which are seeking $17.5 billion bailout package from the government and plan to lay off as many as 80,000 workers, dropped further today, as did leisure industry stocks such as those of cruise companies Carnival Corp. and Royal Caribbean Cruises Ltd.

Four carriers were particularly hard hit, America West Holdings, which fell about 40%, and US Airways Group, Continental Airlines, and AirTran Holdings, which all lost around 20% of their value.