(Note: this article is ''in progress''; there will likely be an update soon.)
U.S. stocks trade lower on Iraq, impeachment gloom
By Ian Simpson
NEW YORK, Dec 16 (Reuters) - U.S. stocks were lower at Wednesday's midday point, dragged down by tensions over Iraq and the looming possibility that President Bill Clinton may be impeached.
A warning about quarterly earnings from Minnesota Mining & Manufacturing Co. (3M) (NYSE:MMM - news) -- the latest in a series of such advisories from U.S. multinational corporations -- also cast gloom over Wall Street.
The Dow Jones industrial average was down 39 points, or 0.45 percent, at 8783 points. The technology-heavy Nasdaq index was off 1.47 points, or 0.07 percent, at 2011.13.
''There are a lot of cross currents that are coming in and caused a little caution in the marketplace,'' said James Volk, co-director of institutional trading at D.A. Davidson & Co. in Portland, Ore.
Analysts also said so-called ''triple witching'' -- expiration of options and futures on stock indexes -- on Friday was contributing to volatility.
Oil and oil field service stocks firmed as crude prices spiked higher amid the tension over Iraq. U.S. forces are standing by in the Gulf for a possible attack on Iraq in response to its defiance over U.N. weapons inspections.
Among them, driller Schlumberger Ltd. (NYSE:SLB - news) was up 2-1/16 to 46-1/8 and oil major Exxon Corp (NYSE:XON - news) rose 13/16 to 74-15/16.
Uncertainty about Clinton's political future compounded the worries over Iraq. The House of Representatives is to begin debate Thursday on whether to impeach him over allegations of perjury and other wrongdoing in the Monica Lewinsky case, leading to a possible trial next year in the Senate.
''With these two things out there, there's going to be a bit of volatility,'' said Ron Doran, director of institutional trading at C.L. King and Associates in Albany, N.Y.
3M's profit warning also dragged the Dow industrials lower. The diversified industrial giant said it foresaw fourth-quarter profits off 10 percent from the same period a year ago.
3M was the 10th stock in the 30-company Dow index this quarter to warn that its results would not meet forecasts. 3M's shares were off 2-12/16 to 71-1/16.
Markets shrugged off U.S. economic data. Commerce Department numbers showed housing starts fell 2.7 percent in November from October. The Federal Reserve also said industrial output fell 0.3 percent last month as industries operated at their slowest rate in more than five years.
(Note: this article is ''in progress''; there will likely be an update soon.)
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