April 28, 2002	Sunday	Safar 14, 1423

NEW YORK, April 27: Stocks fell sharply on Friday, ending the market’s worst week since the post-Sept. 11 week, as grim corporate earnings forecasts offset upbeat economic data.

Bonds rose and the dollar dropped on doubts about the durability of the US recovery.

Gold prices rose to the highest levels in more than two years as investors looked for sanctuary from the Middle East crisis.

A surge in US economic growth failed to keep the blue-chip Dow Jones industrial average from ending below the key 10,000 mark.

The Dow surrendered 124.34 points, or 1.24 per cent, to 9,910.72. It was the first close below 10,000 since Feb. 22.

The technology-loaded Nasdaq Composite Index skidded 49.81 points, or 2.91 per cent, to 1,663.89. The broad Standard & Poor’s 500 Index lost 15.16 points, or 1.39 per cent, to 1,076.32.

The markets are getting oversold, so it is susceptible to good news, said A.C. Moore, chief investment strategist at Dunvegan Associates.

Declining stocks outnumbered advancers by a ratio of 3 to 2 on the New York Stock Exchange.

Earnings have landed in line with lowered expectations as Wall Street wraps up the busiest week of the reporting season, but cautious forecasts have disappointed investors.

This is a market that is trying to find its footing, said Stanley Nabi, managing director at Credit Suisse Asset Management, which oversees about $269 billion worldwide. What is pulling the averages down is, by and large, technology and telecom. Their earnings were worse in the first quarter than was expected when the year opened.

JDS Uniphase fell 50 cents, or almost 10 per cent, to $4.53. The fiber-optics gear maker posted a fiscal third-quarter net loss of $4.3 billion, cut another 2,000 jobs and said it sees a wider fourth-quarter loss than anticipated by Wall Street.

Computer security and Web address company VeriSign Inc. tumbled $8.35, or nearly 46 per cent, to $9.89, ranking among the Nasdaq’s most active stocks and one of its biggest percentage losers. The company posted first-quarter revenue below estimates, lowered its guidance for the second quarter and said it would lay off 10 per cent of its work force.

Dynegy Corp. sank $4.31, or 22 per cent, to $14.90 after J.P. Morgan and Salomon Smith Barney both cut their ratings on the stock. It plunged on Thursday after revealing that US securities regulators are probing one of its natural gas supply deals and said it would post a first-quarter loss due to charges at its telecommunications unit.

The Walt Disney Co. weighed on the Dow with a drop of 90 cents to $24.10.

The entertainment giant posted earnings in line with estimates but some analysts expressed caution given the weak performance of its ABC television network.—Reuters