Dow Falls 300; Nasdaq Down 27 October 12, 2000

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NEW YORK (AP) via NewsEdge Corporation -

The Dow Jones industrial average plunged more than 300 points in early trading Thursday as an earnings warning from home improvement retailer Home Depot added to fears that the market has yet to bottom out.

In the first hour of trading, the Dow Jones industrial average was down 308.91 to 10,015.62.

The Dow's performance brought the broader market with it. After opening up 75 points, the Nasdaq composite was down 26.82 at 3,141.67.

http://www.individual.com/story.shtml?story=h1012103.401

Shares of Home Depot plunged 26 percent after the home improvement retailer warned that its third-quarter and full-year earnings will fall short of expectations, primarily because of price deflation in lumber and building materials.

-- Martin Thompson (mthom1927@aol.com), October 12, 2000

Answers

TSE isn't doing so well, either.

-- Rachel Gibson (rgibson@hotmail.com), October 12, 2000.

Ouch, my poor friend is gonna cry.
I had suggested he use sell limits and he said nope 'I a knows what I'm a doin.'
Yup, he sure does......watching it go down the drain.
I was apalled by the depth of the fall in 3 hours.

-- (perry@ofuzzy1.com), October 12, 2000.

Couldn't find the link to the Home Depot
story about it's Y2K problems. The current
stories don't mention it. Anyone know which
one that is? link?

-- spider (spider0@usa.net), October 12, 2000.

Home Depot (HD): Downgrade to from Analyst: Maureen Carini Co. issues profit warning... Says expects Q3 EPS of $0.28, below Street's expectations of $0.31... Same-stores sales likely to grow only 4%, down from previous estimates of 5% to 7%... Cites falling lumber and building material prices, and difficult comparisons with strong Y2K and hurricane related buying in 1999 for shortfall... Cutting our FY 01 (Jan.) EPS estimate by $0.10 to $1.15, FY 02, from $1.55 to $1.41... Despite our tempered views for remainder of year, market-leader HD remains worthwhile long-term holding.

http://www.personalwealth.com/cgi-bin/WebObjects/SNP? action=gotoDocumentPage&docId=3094606

-- Martin Thompson (mthom1927@aol.com), October 12, 2000.

I've got to agree with Perry. One helluva fall in such a short period of time. When a Dow component goes donw this far, this fast, it has a lot to say about investor sentiment.

I will be eager to check the CNN/FN site late for the full details.

-- Uncle Fred (dogboy45@bigfoot.com), October 12, 2000.

Lower earnings for Home Depot Q3 WebPosted Thu Oct 12 15:10:32 2000 NEW YORK - Home Depot Inc. has issued a profit warning for its third- quarter, citing lower lumber and building material prices.

Company says 1999 sales boosted by hurricane repairs and Y2K fears The home improvement retailer has forecast an earnings per share of 28 cents for its third quarter. Analysts from First Call/Thomson Financial had been predicting a profit of 31 cents a share.

"While our earnings outlook for fiscal 2000 is short of our long-term earnings growth target, the company's rate of profitability and return on capital are continuing at very strong levels," said CEO Arthur Blank.

http://cbc.ca/cgi- bin/templates/view.cgi?/news/2000/10/12/home_depot001113

Home Depot is based in Atlanta with hundreds of stores in North America.

The company says sales in 1999 may have been unusually high because of hurricane repairs and panic-buying due to predictions of a Y2K computer glitch.

Looking into the fourth quarter, Home Depot predicts much the same.

"Many of the same factors affecting sales in the third quarter will negatively impact sales in the fourth quarter," said the company in a news release.

Despite this, Blank says the earnings-per-share growth in fiscal 2001 will hit its target of 23 to 25 per cent.

-- Martin Thompson (mthom1927@aol.com), October 12, 2000.