C/Net Investor: County stock index down 8.5% as Dow plunges below 10,000

The stock market caved at the end of our trading session, with the Dow dropping below 10,000, and techs sustaining heavy blows due to earnings warnings by major hitters and a generally dreary outlook on the U.S. economy.

European and Asian markets added to economic worries as investors eyed dismal results there. “Anyway you put it, this is bad,´ said First Union Securities analyst Gary Kaltbalm. “You are in the vicious cycle now.” The major market indices ended at their lowest in two years. An unexpected upturn in consumer sentiment dashed Wall Street hopes that the Fed will cut interest rates by a substantial margin.

The Dow Jones Industrial Average closed at 9973.46, a loss of 521.82 points, or 4.97 percent. The Boulder County Business Stock Index was also hammered, and lost 255.77 points, or 8.49 percent, to end the month at 2863.71. Declining issues overshadowed advancing issues by 52 to 19.

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Level 3 tumbled this session, losing 9.13 points, or 36.05 percent. However, Level 3 said it will meet or surpass its first-quarter and full-year sales expectations. Communications revenues will range from $360 million to $370 million for the first quarter and $1.7 billion for 2001. Level 3 ended at $16.19, and was our top percentage loser.

Despite news that Veritas is confident about its outlook for the quarter and growth for the year, shares of Veritas dropped 5.25 points, or 8.09 percent, and closed at $59.69. Despite the faltering economic climate, Veritas said it was comfortable with current analysts’ forecasts of $380 million to $385 million revenue, with earnings of $0.20 per share.

Wild Oats jumped 1.98 points this session after Salomon Smith Barney raised its rating, estimates and price target for the company. The investment firm upped Wild Oats to “buy,” from “outperform,” and its first-quarter estimate to six cents per share, a penny above the consensus from analysts surveyed by First Call/Thomson Financial.

Salomon raised its 2001 earnings estimate to 32 cents per share, or five cents above the consensus. “Wild Oats has made significant progress with its turnaround initiatives, which are not reflected in current (Wall) Street earnings and comp store sales growth forecasts,” Salomon said in its research note. “We have also learned that the company’s new larger-store format has been having encouraging results, which should be viewed positively by investors.” Wild Oats closed at $9.03, a gain of 28.16 percent.