- NEW YORK (Reuters) - Stocks
fell on Friday, as McDonald's Corp. MCD.N said earnings estimates for the
year are out of reach as it shuts restaurants, raising questions about
the lukewarm U.S. economic recovery and the market's sharp climb in recent
weeks.
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- "There's some profit taking going on. After 4-1/2
weeks up it was expected. The question was not if, but when," said
Al Kugel, senior investment strategist at Stein Roe & Farnham.
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- As for the latest turn in the issue of Iraq, market players
gave mixed views on a U.N. resolution to disarm Iraq. Some said it had
little impact on stocks. Others said it reminds Wall Street the issue is
not resolved yet, and a U.S. military strike would be more likely if Baghdad
did not comply.
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- The Dow Jones industrial average .DJI gave up 49.25 points,
or 0.57 percent, to 8,536.99, according to the latest data, and the Nasdaq
composite .IXIC dropped 17.50 points, or 1.27 percent, to 1,359.21. The
broad Standard & Poor's 500 .SPX gave up 7.92 points, or 0.88 percent,
to 894.73.
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- McDonald's led the blue-chip Dow lower with a drop of
$1.52, or nearly 8 percent, to $17.79. The company said it would close
about 175 restaurants worldwide and will miss its 2002 earnings estimate
as it continues to struggle with underperforming sales in the United States
amid stiff competition in the fast-food business.
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- The U.N. Security Council unanimously approved a resolution
giving Iraq one last chance to eliminate its weapons of mass destruction
or face "serious consequences." U.N. backing of the resolution,
drafted by the United States and Britain, had been expected by Wall Street.
.
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