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Freefalling Nasdaq Down 13.4 Percent; Dow Down 4.2 PercentAired April 4, 2000 - 1:15 p.m. ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU WATERS, CNN ANCHOR: This could be one for the record books on Wall Street.
Rhonda Schaffler is at the New York Stock Exchange, watching the dramatic slide today -- Rhonda.
RHONDA SCHAFFLER, CNN CORRESPONDENT: Hi, there, Lou.
It is shaping up to be a very ugly day here on Wall Street. The Nasdaq composite is in a freefall, and it's pulled the Dow Jones industrial average along with it in what is now being termed a "massive sell-off."
Right now, the Nasdaq is at its lows for the session; it's off 542 points, that is a drop of 13 percent.
Now, if the Dow were down 10 percent for the day, they would actually halt trading for a while here.
The Nasdaq is now more than 20 percent below its record high set less than a month ago. If it closes at this level, the Nasdaq will fit the standard definition of being in a bear market.
Some of those stocks that helped drive the Nasdaq's record run are weighing it down today. Cisco Systems, for instance, is off more than eight. Sun Microsystems skidding 17. Yahoo! tumbling 25. Microsoft is down 5 7/8. Intel is down 10.
Both Microsoft and Intel are also Dow components. So their loss is weighing on the blue-chip index; it is off dramatically now, down 482 points. If the trading day would end here, it would be the fourth-worst one-day point sell-off for the Dow.
Even financials, which powered the Dow yesterday, are losing ground. American Express is tumbling 12.
Many investors are putting their money into treasuries right now in what is being called a flight to safety. The 30-year bond is surging 2 1/4 points. The yield has dropped down to 5.66 percent. And the 10-year note is up 1 3/4; the yield is 5.73 percent.
It is also a down day for Unisys. The computer services supplier says its first-quarter revenue will be lower than expected. It blames the slowdown in customer spending. This marks the second time in three quarters the company would post slack revenue growth. Unisys shares are off 3 3/4 at 21 11/16.
Tonight on "THE MONEYLINE NEWS HOURS," get a damage report on these markets and find out what's in store for the Nasdaq composite. That is tonight 6:30 Eastern on CNN.
And that is the latest from Wall Street. Back now to Lou in Atlanta.
WATERS: Rhonda, yesterday we saw, with the drop in the Nasdaq, a lot of those investors shifting over to the blue chips. That's not happening today.
WATERS: Is the Microsoft decision all that instrumental in why that's not happening today?
SCHAFFLER: Well, Microsoft certainly had some impact on the markets yesterday. Yesterday was very atypical. Usually, when one market sells off sharply, others will follow. That's what's going on today. This is more the norm on Wall Street.
Some traders are describing the sell-off now in the Nasdaq as a panic sell-off. When you are seeing a major market index down 13 percent, other investors get nervous. And so, we did see a turn- around in the Dow. And when you have markets in a bit of a freefall, as they are now, it's very typical that other indices will follow.
WATERS: OK, we'll check back, Rhonda. We'll be close to this story throughout the afternoon. And there's another stock to watch this afternoon. Maybe a sweet taste of success while we're watching the other stocks fall.
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