WESTON, Fla., May 10, 2004 (PRIMEZONE) -- Stocks ended Friday with sizable losses across the board, after a volatile session that saw all the major averages dip to near-term lows. The Nasdaq Composite closed down 20.83 points, or 0.81%, to 1897.13, while the Dow Jones Industrial Average dropped 82.75 points, or 0.9%, to 10,034.59. The S&P 500 was down 8.44 points, or 0.2%, to 1,088.81.
Stocks in the news include Citigroup (NYSE:C), who said it would take a $5 billion charge in the second quarter to settle the WorldCom class action suit and increase litigation reserves. Under terms of the WorldCom settlement, the financial services giant will pay $2.65 billion to those who acquired WorldCom stock from between April 29, 1999 to June 25, 2002. In addition, the company increased its reserves for all of its remaining exposure in Enron and other pending suits related to 2003 regulatory settlements.
Descartes Systems Group (Nasdaq:DSGX) said it determined from a review of its fiscal 2004 financial statements that it needed to make a number of adjustments to statements for the year ending January 2004. The software company also indicated that fiscal first-quarter results will fall short of expectations, which will lead to further cost cutting. Descartes now expects a loss of 27 to 25 cents a share on revenue of $13.3 million to $13.6 million, below prior projections of a loss of 13 to 11 cents and revenue of $15.5 million to $16.5 million.
Geac Computer (Nasdaq:GEAC) software maker, said late Friday that a major pharmaceutical company will use its business analysis programs. The customer and contract terms were not disclosed.
ITXC (Nasdaq:ITXC) which operates an Internet telecom network, said late Friday that it sued rival Acceris Communications, alleging infringement of five patents on voice over Internet technology. ITXC said it has previously been sued by Acceris over a different patent.
But the talk of the town is still Google, which is expected to have an initial public offering in the near future, an event that will probably mimic the IPO environment of the late 90's. The Company is reportedly being very tight-lipped about its plans, but it will be interesting to see the reactions of some of the space's biggest players, like Yahoo!, and Amazon.com.
The latest Federal Open Market Committee meeting was held on Tuesday, May 4, 2004, where the FOMC changed its tune somewhat, saying in its statement that "The Committee perceives the upside and downside risks to the attainment of sustainable growth for the next few quarters are roughly equal," the FOMC said in its statement. "Similarly, the risks to the goal of price stability have moved into balance. At this juncture, with inflation low and resource use slack, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured."
In plain terms The Fed is saying that conditions have improved to the point that rates can start moving up from their current historically low levels, but will probably do so at a measured, and even pace . . . no 50 and 75 basis point hikes in the near future. The Fed also said it "continues to believe that an accommodative stance of monetary policy, coupled with robust underlying growth in productivity, is providing important ongoing support to economic activity." Regardless, many analysts are saying the first rate increase may come as early as June.
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