Wall Street: Monday close

WALL Street ended a tumultuous year with a whimper and not a bang as shares slumped in extremely slow trading.

The Dow Jones Industrial Index fell 115.49 points or 1.14% to 10,021.50, bringing its losses for the year to 7.1%. The world's most closely watched share index posted its first back to back annual declines since 1977-78 after dropping 6.2% in 2000. The Nasdaq Index shed 36.86 points or 1.85% to 1,950.40, adding to a decline of 20% for all of 2001. The Nasdaq's two-year decline has been the biggest in nearly two decades.

Trading was so light that some traders questioned whether the exchanges should have bothered to open for the day at all. Daily turnover was among the lightest in years as investors appeared eager to put 2001 behind them. The light trading was an anti-climax to a year punctuated by the terror attacks of 11 September, a full-blown recession and the continuing decline of the once-frenzied tech sector.

John Forelli, senior vice president at Independence Investments, called 2001 'a tough year.' 'Thank God we had a strong fourth quarter, because at the end of the third quarter, sentiment among money managers was about as low as I have seen it in 10 to 12 years in the business,' he said.

Jeffrey Applegate, Lehman Brothers' investment strategist, said he subscribed to the forecast, common among Wall Street experts, that the markets will strengthen as profits pick up with a widely anticipated economic recovery in the New Year. In a note to clients Monday, Applegate said low inflation and falling interest rates would help the market, even though shares were 'richly valued.'

Pharmaceutical shares dipped after biotech company ImClone said the US Food and Drug Administration had asked for more information about a promising cancer drug, potentially delaying its introduction. ImClone shares tumbled $8.79 or 16% to $45.46. Bristol-Myers Squibb, which had bought 20% of ImClone in part due to the drug's promise, slid 80 cents or 1.5% to $51. Johnson & Johnson fell 76 cents or 1.3% to $59.10.

Microsoft, the best performer among Dow stocks on the year, tumbled $1.62 or 2.4% to $54.25 as nine US States pressed their legal case against the company's dominant position in software. Intel slid 79 cents or 2.5% to $31.45.

American Expresss, one of the worst performing Dow components due to a 30% plunge on the year, gave up another 36 cents or 1% to $35.69..

Among other Dow stocks, Dupont lost an early gain to finish down slightly at $42.51, Eastman Kodak was marked down $1.05 or 3.4% to $29.43 and ExxonMobil declined in step with lower oil prices, closing off 48 cents or 1.2% to $39.30.

Airlines benefited from the approval of Government loans mean to stabilise the industry in the wake of September's terror attacks. UAL, parent of United Airlines, rose 35 cents or 2.7% to $13.50. BA's partner American Airlines, through its parent AMR, also gained favor, adding 30 cents or 1.4% to $22.30.