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Wall St. fades at the close
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September 25, 2000: 5:20 p.m. ET
Stocks suffer despite oil price drop as Intel dives for second day, euro tumbles
By Staff Writer Jake Ulick
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NEW YORK (CNNfn) - The Nasdaq composite index fell for the third straight session Monday, bringing its September loss to 11 percent as concerns about the state of corporate financial results offset optimism over falling oil prices.
Intel, a big mover in all three major U.S. stock indexes, slid for a second session, suffering on the chip maker's warning that third-quarter revenue will fall short of forecasts. The euro, whose weakness is expected to cut into corporate profits, added to the pessimism. The currency stumbled once again Monday, even after the world's biggest central banks tried to prop it up.
Nick Angilletta, head of global trading at Salomon Smith Barney, said the market lacks any near-term catalyst to keep stocks from doing what they typically do in September: fall.
 "You still have (earnings) concerns about the quarter and we still have another week of (warnings) pre-announcements," Angilletta said.
After rising earlier in the session, the Nasdaq composite index fell 62.54 points, or 1.6 percent, to 3,741.22. The Dow shed 39.22 to 10,808.15, also giving up earlier gains. In addition to Intel, losses to Dow members Microsoft and Exxon Mobil offset gains to financial stocks. The S&P 500 declined 9.69 to 1,439.03.
With the final week of the third quarter under way, this is the first time since 1990 that all major indexes are lower three-quarters of the way through the year. The Nasdaq is off 8 percent in 2000, the Dow down 6 percent and S&P lower by 2 percent this year.
John Forelli, senior vice president at Independence Investment Associates, sees stocks moving sideways before being lifted later next month when companies start reporting results for the June-September period.
Linda Jay, NYSE trader for RPM Specialists, agreed. She spoke with CNNfn's Market Call Monday. (232K WAV) (232K AIFF).
More stocks fell than rose Monday. Declining issues on the New York Stock Exchange topped advancing ones 1,621 to 1,279 on volume of 974 million shares. Nasdaq losers beat winners 2,249 to 1,787 as more than 1.7 billion shares changed hands.
In other markets, Treasury securities edged higher. The dollar was little changed against the yen but rose verses the euro, even after the Federal Reserve and Japanese central banks Friday bought euros to stem the currency's dramatic slide.
Tech wreck resumes
Monday's technology retreat comes amid a tough period for U.S. stocks. More than 60 companies warned last week of missing profit forecasts for the June-September period, sending the Nasdaq, Dow and S&P 500 lower for a third straight week.
 The highest oil prices in nearly a decade haven't helped. At the same time, companies including McDonald's and Gillette have said the weak euro will hurt overseas profits when translated into strong dollars. Oracle posted weaker-than-expected sales earlier this month while Intel warned last week that revenue growth would disappoint Wall Street.
After rising earlier in the session, Intel (INTC: Research, Estimates) fell $2.56 to $45.38, extending Friday's pummeling. The chip maker's shares tumbled 22 percent that day after warning it would miss third-quarter revenue projections. Other tech stocks also suffered, with Cisco Systems (CSCO: Research, Estimates) off $3.13 to $57.19 and Microsoft (MSFT: Research, Estimates) down $2 to $61.25. The Supreme Court revealed that the justices met Monday to determine if they'll hear the appeal of Microsoft's antitrust case.
More news from CNNfn.com for investors:
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· NYSE expands decimals
Monday's fall in the price of oil -- whose highest prices in a decade have threatened the economy's health - wasn't enough to turn sentiment around. And the drop, which came after President Clinton last week said he would release fuel from the U.S. strategic reserve, hurt specific stocks. Exxon Mobil (XOM: Research, Estimates) shed 66 cents to $85.84, sinking with other oil producers, which can profit as oil prices rise.
Still, investors found some places to hide Monday. American Express (AXP: Research, Estimates) gained $1.13 to $59.88 and Citigroup (C: Research, Estimates) advanced $1.50 to $54.25.
Stocks such as Compaq Computer (CPQ: Research, Estimates) and Honeywell (HON: Research, Estimates), meanwhile, became the latest to be quoted in decimals Monday. The New York Stock Exchange began expressing 57 stocks in decimals rather than fractions, after first quoting 15 companies that way last month. Compaq fell 3 cents to $28.60 while Honeywell dipped 72 cents to $35.76.
Both the NYSE and Nasdaq stock markets plan to convert their entire rosters of more than 7,000 companies to decimals next year. Most news organizations -- including CNNfn.com, the Wall Street Journal and the New York Times -- already make the conversion.
Home sales surge
In economic indicators Monday, existing home sales surged to an annual rate of 5.27 million units in August, well above the 4.94 million rate expected by analysts surveyed by Briefing.com. Though surprising, the number had no apparent effect on a market convinced the Federal Reserve is done raising interest rates this year.
 Despite six rate increases by the Fed in over a year, mortgage rates actually edged lower this summer, sending home buyers into the market, something analysts expect to continue.
"The August reading on existing home sales was inflated to a degree by pent up demand from the prior month," said Mike Moran, economist at Daiwa Securities. "But it also showed that the housing market should be well maintained at current interest rates." 
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