Dow Jones' worst day since 2003
New York: Wall Street suffered its heaviest losses in almost three years on Friday, as some of America's biggest companies reported lacklustre earnings and oil prices headed back up toward US$70 a barrel.

The Dow Jones Industrial Average, the index of blue chip shares, plunged 213.32 points to 10,667.39 - the worst one-day point drop since March 2003. The Nasdaq technology index suffered its worst one-day points loss since September 2003, shedding 54.11 points to close at 2,247.70.

Details of Ford's plan to cut 25,000 jobs and close up to 10 plants also added to the general gloom. The plan is due to be announced on Monday.

The Dow had rallied past the 11,000-point mark earlier this month for the first time since 2001, on the expectation interest rate rises were coming to an end. The Dow has now erased all of its gains in the first few weeks of 2006. In percentage terms, yesterday was the Dow's worst performance for nine months.

Google was among the biggest losers yesterday, falling 8.4% to just below $400, the biggest one-day percentage fall for the search engine since it joined the market 18 months ago. The company hit a high of US$471.63 on January 11. Fourth-quarter figures from Citigroup and General Electric yesterday, which fell shy of Wall Street hopes, suggested that slowing growth was not confined to the technology sector.

Citigroup, America's largest banking firm, missed analyst estimates - its fourth quarter earnings were $4.97bn, against forecasts of $5.05bn. It was the biggest decliner in the Dow, its shares falling almost 5%. GE, the world's second largest company by market value, reported its smallest profit gains since 2004. Mobile phone maker Motorola also lowered its outlook on Thursday night after the market closed.

Oil prices were back at four-month highs, with a barrel of light crude rising to US$68.48 in New York.

The broader Standard & Poor's 500 index lost 23.55 points to close 1,261.49.
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Nasdaq and NYSE may be eyeing the LSE
New York: Wall Street is abuzz with speculation that Nasdaq, now the world's second largest stock exchange after the NYSE, is planning a bid for the LSE. The LSE is currently occupied with a hostile bid from Australia's Macquarie.

Analysts base their premise on several conjectures. According to them, the US stock market is mature, and opportunities for expansion at home are limited. Sarbanes-Oxley, with its stringent rules for companies that list in the US, has made it harder for foreign companies to list in the US. Big Russian companies have instead chosen to list largely in London.

London offers trading in derivatives, a business closed to the US stock exchanges since the depression-era.

Officials at both big New York exchanges privately concede that the LSE is the biggest prize out there.
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