NEW YORK - Stocks slid on Wednesday and major market indices closed within spitting distance of their lows for the year.
The slide came after industry bellwethers Lucent Technologies and Motorola warned that earnings growth would slow in the coming year.
Wall St has suffered market falls almost every day this
month amid worries that high oil prices, Europe's weak single currency and a slowing domestic economy would depress corporate earnings.
"There is fear that there is more bad news to come," said Brian Kirkpatrick, a money manager with Bridges Investment Counsel.
"Everybody is looking for such leaders as Cisco Systems to finally be hammered with everybody else, which might indicate the carnage is over."
Lucent Technologies, the world's No 1 telecom equipment maker, fell $US10 1/8 to $US21 1/4, after it slashed its profit growth outlook for the third time this year and warned that it would cut the 2001 forecast.
Peter Cardillo, of Westfalia Investments, said: "It's obvious that we are in a really bearish mode and it's going to take a real capitulation before things turn around."
Shares in London took a hammering on Wednesday, with the FTSE closing at its lowest since May 23.
"It's basically a question of a lack of confidence in earnings," said Philip Isherwood, Dresdner Kleinwort Benson's British equity strategist.
"The oil sector is bravely holding out but banks and telecoms are being dragged down."
One trader said: "The techs are taking another thump between the eyes, quite simply because of Lucent."
As a result of Lucent's warning, Bookham and Marconi dropped 14 per cent and 6 per cent respectively.
