Market briefing---Matt (slow)
Nasdaq---Julie (slow)
Tyco---Allan (slow)
>> welcome back to “world financial report.” i’m matt nesto. let’s recap, another day that was on wall street and a down day indeed. the dow, s&p and nasdaq all down over 1% today, falling to a three-month low, the s&p 500. treasuries were up today as terrorism concerns stockholder the market for on stoked the market for so-called securer and safe investments. the 10-year yield falling. the dollar was mixed in new york trade, up against the yen and down against its european peers. the nasdaq was hit by security concerns today, pushing it down close to its 200-day moving average. julie hyman has the details in this wrap-up report from the nasdaq marketsite.
>> the nasdaq finished down 1.6% today, coming up to average volume again. we had been below average volume last week. it was the terrorism concerns after the killing of the leader of hamas in the west bank that set off the declines today. then we saw technical selling, as well. we are now about 23 points off the 200-day moving average for the nasdaq. that is 23 points above. some traders are saying we need to touch that level or go below it in order to come back with more of a rally in the nasdaq. all of these concerns, whether terrorism, security concerns and also technical levels, combining to create a broad-based decline in the nasdaq today. we had all of the groups within the nasdaq declining. we have the nasdaq declining for the whole day, varying in the level, coming up off the lows in the session closing out the session. and today, in particular, we’re watching shares of israeli companies that trade here in the u.s. many were declining in today’s session. gilat satellite networks falling, alvarian falling, teva pharmaceuticals and one company benefiting, magl security systems, benefiting today. another company on the u.s. side, microsoft as e.u. regulators met today in brussels to decide on the fine they will impose on microsoft related to the antitrust suit against the company and dow jones industrials saying that fine will relate to $612 million u.s. after that report came out, we had the microsoft shares finishing out the session .5% lower. back over to you.
>> in other news, jurors in
manhattan have completed a third day of deliberations in the fraud and theft trial of former tyco executives dennis kozlowski and mark swartz. kozlowski and swartz are accused of looting tyco of $170 million in unauthorized loans and bonuses and also of defrauding investors of $430 million by selling inflated tyco stock. allan dodds frank has been covering the trial and has the day’s developments.
>> the jury of nine men and three women have been sitting for almost six months and retired today without reaching any verdict. former tyco―today the jury heard more read-backs of testimony from former tyco chief financial officer, mark swartz. former tyco c.e.o. dennis kozlowski did not testify while swartz spent nine days on the stand as the only witness for the defense. the jurors want to review the testimony about a bonus he received in 1999 that he failed to report on taxes. prosecutors say swartz stole the unauthorized bonus from tyco and he testified the bonus was a legitimate part of overall compensation for the year and that the $12.5 million was part of the loans to himself, kozlowski and a third employee that the company later decided to forgive. the company also wanted to hear testimony that said swartz admitted to him the bonus was a mistake. boiseboyse said that the bonus was not disclosed to investors and was not on the income tax filing. swartz said he told accountants about the bonus and did not know they failed to report it on his tax returns. matt?
>> that’s david boyse of the dimpled chad fame during the election. what do jurors make of these specific questions?
>> the attorney for mark swartz believes the jurors are focused on the story swartz’s story that the bonuses were authorized by the company and they want to check his credibility to see his testimony to see if they believe it.
>> and we’ll be back at it tomorrow?
>> right, absolutely.
>> allan dodds frank, thank you very much.
>> you’re welcome.
>> moving on here, now, sears roebuck cut chief executive alan lacy’s salary and bonus 32% last year after profit failed to meet company goals, earning 32% less than the year before. shares at sears roebuck are down 5% year to date. when we return, we’ll talk bonds with pimco’s mark kiesel and he’ll tell us why he likes european sovereign debt and we’ll talk about munis.
