Wall Street report: Friday close

MARKETS tumbled to their fifth straight losing week as one leading tech index dived to levels not seen since January 1998. The Dow Jones Industrial Average plunged 177.98 points or 1.89% to 9253.79 to bring its losses for the year to 7%. The Nasdaq Index fell 23.82 points or 1.63% to 1440.93 with a 26% drop year to date.

The Nasdaq 100 Index, which includes the biggest companies on the tech-driven exchange, slumped to four and a half year lows. The magnitude of the losses is such that 2002 is shaping up as one of the worst years in US history. The Wilshire 5000, the most comprehensive measure of market value, reflects a $1,450bn. plunge in market value since 1 January.

In a day bereft of major economic news, the focus fell on the continuing decline in the US dollar and analyst recommendations with IBM hogging the headlines there. Salomon Smith Barney became the latest of several Wall Street firms to downgrade 'Big Blue' this week. IBM shares, at $126 in January, fell $2.83 cents or 4% to $68.75. Salomon upgraded personal computer maker Dell and its shares were fractionally higher at $23.98

The chorus of analysts downgrading Cisco Systems grew as its shares slumped another 34 cents or 2.4% to $14.

The tumbling dollar, now at a two-year low against the euro, underscored what is perceived as a flow of foreign money out of US markets given eroding confidence in US accounting. Pharmaceutical giant Merck became the latest casualty of book-keeping woes, when it was reported that it had employed more aggressive techniques than its rivals. Merck shares dipped $2.21 or 4.2% to $49.99.

Fellow pharmaceutical company ImClone Systems, which is having its share of troubles with US regulators, lost another 33 cents or 3.7% to $8.70, down from $75 in the past 12 months. Conglomerate Tyco International, which has had its corporate governance methods questioned, eased another $1.65 or 11% to $13.70.

Techs which warned earlier this week that their earnings would not be up to snuff gave up more ground. Apple Computer declined 26 cents or 1.5% to $16.85.Advanced Micro Devices was off 23 cents or 2.8% to $8.04.

Tobacco companies were hit by an adverse court ruling. Philip Morris was marked down $2.15 or 4% to $52.65 and RJR lost $3.11 or 1.6% to $61.55.