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Market Ugly Again; Volume Lags
1The major indexes, plagued by sluggish economic data, gave back much of their recent gains. The Nasdaq plunged 3.6%, the S&P 500 3% and the Dow 2.6%. But volume fell sharply across the board. Chips and energy stocks struggled. After the close, Disney led the list of yet more companies issuing profit warnings. More on B2
Factory Output Weakened In July
2In another sign the economy's momentum may be stalling, the monthly manufacturing index dropped to 50.5 from 56.2 in June, hitting its lowest point since Jan. Though any score above 50 signals growth, analysts warned the drop was a bad omen for manufacturing. The new orders index, a gauge of future output, sank to 50.4 from 60.8 the month before. More on this page
Two WorldCom Figures Charged
3Ex-CFO Scott Sullivan and Ex-Controller David Myers were charged with securities fraud for their part in the $3.85 bil accounting scandal. They could get five years in jail for conspiracy, and 10 years and $1 mil for each of the six fraud and false filing counts. The arrests came two days after President Bush signed a corporate fraud bill.
GM Sales Leap; Ford's Rebound