Bearish analyst forecasts for General Electric Co. and a profit warning from tobacco giant Philip Morris Cos. Inc. sent stocks tumbling this evening, pushing market gauges lower for the fifth straight week.
The blue-chip Dow Jones industrial average was hammered the hardest after two analysts cut earnings estimates on Dow component GE after scrutinizing the conglomerate's third-quarter numbers.
Dow stock Philip Morris sagged after the cigarette-maker slashed its full-year outlook. Phone company SBC Communications Inc. added to the Dow's woes after saying it will cut about 6 per cent of its work force.
The Dow average tumbled 295.67 points, or 3.70 per cent, to 7,701.45, according to the latest data. Only one stock in the average, Coca-Cola Co., closed higher. The beverage company gained 4 cents to $48.47.
The broader Standard & Poor's 500 Index fell 27.58 points, or 3.23 per cent, at 827.37. The technology-laced Nasdaq Composite Index erased an early gain to fall 22.46 points, or 1.84 per cent, to 1,199.15.
Market breadth was sharply negative, with 23 stocks falling for every nine that rose on the New York Stock Exchange.
Trading volume was active, with 1.5 billion shares changing hands on the Big Board.
For the week, the Dow slumped 3.6 per cent, the S&P 500 has dropped 2.1 per cent and the Nasdaq dropped 1.8 per cent.