Market sees red as Dow has record loss

Chain letters urging people to "put money into the markets" were distributed last week via the Internet. Many traders announced they would not sell stocks short. Fund managers said they would not attempt to profit off of terrorism. The Securities and Exhange Commission announced it changed its rules dealing with corporate share repurchase programs. And, the Federal Reserve lowered interest rates by half a percentage before the opening bell even rang (in a show of support, the Bank of Canada, the Swiss National Bank and the European Central Bank also lowered interest rates by half a percentage). Yet, many on Wall Street had the feeling that stocks would suffer on Monday.\nAt 9:33, after a moment of silence and the song God Bless America, the markets opened. In the first trading session since September 11, the Dow dropped a record 684 points. The Nasdaq reached a 52-week low.\nAirlines were hit particularly hard as many investors worry that business and leisure travel will slow. Hotel companies fell as investors realized that less air travel means fewer hotel rooms will be filled. Insurance companies were also lower, many have already announced they will be paying out large attack-related claims.\nSome defense and healthcare companies experienced gains. But, most of the market traded decidedly in negative territory. Before last week's terrorist attacks, many companies had already announced they would have a difficult time meeting expected profit targets. Now many companies are attempting to determine the ramifications of last week\'s events. \nThe major U.S. markets were hit hard on Monday. They may not bounce back quickly. Many companies will suffer financially, especially in the short term, because of the World Trade Center tragedy. But, business will continue. The markets will eventually turn positive. Companies will deal with their situations and look to the future.