Accounting Issues Make A Comeback

About the last thing the stock market needed was for accounting issues to resurface, but sure enough, that’s what happened on Monday.

Nortel tumbled 18% after the company put its CFO and controller on leave in the wake of accounting problems that will force the company to restate 2003 results. So much for post-Enron controls.

NetEase lost 10% on its own accounting problems, but at least they date back to 2000.

And Veritas lost 6% on news that it will be restating results from 2001-2003.

On top of mounting economic and terrorism concerns, the result was yet another nasty down day for the market.

The Nasdaq plunged 45 to 1939, the S&P 500 dropped 16 to 1104, and the Dow fell 137 to 10,102. Volume rose to 1.53 billion shares on the NYSE, and 1.74 billion on the Nasdaq. Decliners led 24-8 on the NYSE, and 25-6 on the Nasdaq. Downside volume was 89% on the NYSE, and 91% on the Nasdaq. New highs-new lows were 79-19 on the NYSE, and 64-12 on the Nasdaq.

Microsoft slipped as an EU antitrust decision nears.

Roxio soared 18% after raising estimates.

Monster Worldwide and Avid gained 3-4% on upgrades.

Xicor rose 8% on news that the company will be acquired by Intersil .

InterActiveCorp fell 6% on a downgrade.

EDS edged higher on news that it will sell its software unit for $2 billion.

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