Market action is to the downside this morning after "weekend warnings" from WorldCom (NASDAQ:WCOM) $4.20 -29.7% and LM Ericsson (NASDAQ:ERICY) $2.65 -25% sour technology investors taste buds.
Sector losers as the Combined Telecom Index (IXTCX) 154 -6.7%, North American Telecom (XTC.X) 554 -4.45%, Wireless Telecom (YLS.X) 64.5 -4.7%, Fiber Optic (FOP.X) -4.12% and Networking (NWX.X) 223 -2.4% leading technology declines.
Also seeing weakness today is the Airline Index (XAL.X) 96 -3.71% partially weakened by news out of Iraq that has CNN reporting that Saddam Hussein is calling for a 50% reduction in Arab nation oil exports and a complete embargo on the US and Israel. May Light, Sweet Crude Oil futures (cl02k) are down 1.4% to $26/bbl as oil traders note that recent calls for an embargo by Hussein made recently have not seen support from other Middle East countries.
AIG don on rumor of SEC investigation
Shares of insurance concern AIG International (NYSE:AIG) $68 - 4.15 are being hit to the downside this morning after trading floor rumor surfaced that the company may be under SEC investigation. It has been noted by some that on February 21, the company was served a subpoena in relation to an investigation into PNC Financial Services' (NYSE:PNC) $58.23 +0.05% bookkeeping.
American Intl. Group Chart - $1 box
Rumor of a potential SEC investigation has the point and figure chart of AIG giving both a bearish triangle and spread-triple- bottom sell signal today and looking further bearish. Today's sell signal at $70 and growing column of O has the current bearish vertical count growing to $60.