US stocks: Markets shake off passenger jet crash

10.30 am

NEW YORK - Technology stocks rose on Monday (NY time) and the broad market held modest losses as investors shook off stunning news of a passenger-jet crash in New York to focus on Ciena Corp.'s ray of hope in the depressed telecommunications sector.

The Dow Jones industrial average ended down 53.63 points, or 0.56 per cent, at 9,554.37, according to the latest data, after slumping 200 points initially on fears that the American Airlines Airbus A300 crash near John F. Kennedy airport was another attack on the United States. The plane crashed minutes before the stock-market opened.

The cause of the disaster was unknown but US transportation officials said early information suggested it might have been an accident.

The Nasdaq composite rose 11.65 points, or 0.64 per cent, to 1,840.13, which was its highest close since late August. Earlier, the Nasdaq slid 2.5 per cent. The broad Standard & Poor's 500 index slipped 1.98 points, or 0.18 per cent, to 1,118.33.

"The market does show remarkable resilience ... it bounced back nicely indicating bargain-hunters are still ready to buy on unexpected opportunity caused by unexpected weakness," said Alan Ackerman, chief market strategist at Fahnestock & Co. "Nonetheless an event of this kind does raise anxiety levels which has put pressure on the market."

Stocks regained lost ground, but airline and leisure stocks, already hit hard by plummeting travel and tourism after the Sept. 11, attacks fell across the board. AMR Corp., parent of American Airlines, fell 9 per cent, or $US1.64, to $US16.49.

Officials shut down New York area airports and some commuter train service for a few hours. Also sealed off were bridges and tunnels into the city.

Optical networking company Ciena said it expects fourth-quarter earnings to be in line with Wall Street's expectations, despite the spending slowdown in the communications sector. Ciena rose nearly 10 per cent, or $US1.65, to $US18.83.

"You still have to hand it to (Ciena) for staying profitable in this environment and not imploding like we've seen competitors both large and small," WR Hambrecht analyst Tim Savageaux said.

- REUTERS

* The New Zealand Herald will publish a special edition today with updated coverage of the New York city plane crash. This special edition will be on sale in Auckland and main provincial cities at midday.

Complete coverage

Map of crash area

American Airlines information (from within NZ):
0168 1 800 245 0999