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Breaking News

Nasdaq Shuts Down

Aired June 29, 2001 - 16:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
STEPHEN FRAZIER, CNN ANCHOR: Just seconds after the closing bell and we're going to go to Susan Lisovicz in New York to find out what this breaking news is on the Nasdaq -- Susan?

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Stephen. Well, it is huge, because the Nasdaq is the nation's No. 2 stock market and it had to shut down trading for a second day because of technical problems on its computerized trading system. That is always a problem, but it is especially a problem late in the session on the final trading day of the second quarter, and on the one day a year when the Russell 2,000, which is a very large index, is reconfigured. That's because you expect a lot of volume, especially late in the session.

The Nasdaq right now shut down. We're getting word from the Nasdaq that trading will be extended until 5:00 p.m., but right now we don't really know what is going on with the Nasdaq. We've been seeing their gains at 43, nearly 44 points. It would mark the Nasdaq's fifth straight winning session. Before today the composite was up about 16 percent for the quarter, making it the Nasdaq's first positive quarter after four straight losses.

Meanwhile, what had been a good day for the Dow Jones Industrials turned negative. Right now preliminary numbers show the blue chips down 55 points at 10,510, but the Dow is up about 7 percent in the second quarter, which, as I mentioned, ends today for Wall Street. On both the Nasdaq and the Dow, Microsoft falling a little less than a dollar, the day after the big appeals court decision keeping the software giant intact for now.

And another big story: G.E.-Honeywell deal apparently dead again. Honeywell said it would be willing to lower G.E.'s purchase price to help G.E. make the concessions that European regulators want, but G.E.'s CEO Jack Welch, who postponed his retirement to seal the merger, says the new proposal cuts the heart out of the deal, makes no sense for G.E. shareholders. On that news, G.E. shares added just fractional gains, but Honeywell fell more than three. Honeywell, the worst performing Dow 30 stock.

In other news, some tech companies are giving their employees some unexpected vacation time. Compaq Computer says most of its 33,000 workers will have all of next week off for July 4th, It's part of a cost-cutting measure, as tech companies are struggling with weaker returns in the slowing economy. Other companies like Sun Microsystems, Hewlett Packard and Applied Materials are instituting similar programs. Compaq, up about $1 today, and the others posted strong gains as well.

For a closer look at what stocks analysts are talking about, go to cnnfn.com and click on the "Street Sweep Shakers" section. And that is the latest on Wall Street. You're just 45 seconds away from logging on to the CNN news site with Stephen Frazier.

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