Securing Profits
Investors Cash in on Last Week's Gains
The Associated Press
abcnews.go.com
N E W Y O R K, Nov. 28 — Investors' nagging uncertainty about the economy prompted them to collect more profits today, sending stocks down sharply and the Dow Jones industrials tumbling by triple digits for the second straight day.
Analysts said some selling was expected as investors aren't completely convinced the economy will improve in the first half of 2002 as they'd like. For weeks, hopes that business will improve early next year have been boosting the market.
"We're making a bottom, but we're not out of the woods yet," said Richard Jandrain, senior managing director at Banc One Investment Advisors Corp.
Analysts had expected investors to lock in profits, given how strongly the market has rallied since late September. As of Monday, the Dow had risen 21 percent since closing at a low of 8,235.81 on Sept. 21 following the terror attacks. After two consecutive triple-digit losses, the blue chips are still about 18 percent above that low.
"After this run we have had, it is normal to have some profit taking regardless if it is a consumer confidence number or whatever the catalyst. The reality is we were due for some pullback," said Barry Hyman, chief investment strategist at Ehrenkrantz King Nussbaum. He referred to an unexpected drop in consumer confidence reported Tuesday by the Conference Board. |
