Stocks fall on more bad economic, earnings news

The Associated Press

NEW YORK - Another spate of bad economic news, brokerage downgrades, and profit declines further demoralized investors yesterday and sent stock prices tumbling. The Dow Jones industrials, down more than 150 points, headed toward 8,000.

''Investors' emotions continue to drive the market. ... All you see is negative news,'' said Thomas F. Lydon Jr., president of Global Trends Investments in Newport Beach, Calif., citing earnings warnings by Electronic Data Systems, a weak housing report and the possibility of war with Iraq.

''Investors on Wall Street are clamoring for good news that just isn't there.''

In midafternoon trading, the Dow Jones industrial average was down 151.13, or 1.9 percent, at 8,021.32, having lost 207.73 in the previous two sessions. The Dow came within nine points of 8,000 early in yesterday's session; it last traded below 8,000 on Aug. 5, but has not closed below that level since hitting its July 23 low of 7,702.34.

The Dow has lost more than 1,000 points since its recent peak on Aug. 22 as mixed economic reports and worries about war with Iraq have eroded investors' confidence.