Originally created 06/09/01

Business briefs



NEW YORK - An earnings warning from Juniper Networks sent stocks tumbling Friday in a selloff exacerbated by computer problems that shuttered the New York Stock Exchange for 85 minutes.

NYSE trading resumed at about 11:35 a.m. for most stocks, though some companies did not start trading until early afternoon.

The Dow Jones industrial average fell 113.74 to 10,977.00. The Nasdaq composite index dropped 48.90 to 2,215.10, while the Standard & Poor's 500 index slipped 12 to 1,264.96.

The NYSE had opened as usual at 9:30 a.m., but halted trading at about 10:10 a.m. because of a failed software installation that was affecting trading in about half of the exchange's 3,500 listed stocks.

The Nasdaq Stock Market and other exchanges remained open throughout the NYSE's problems, but volume was light until the NYSE reopened.

"People don't want to make decisions when they can't see the whole trend of the market," said Ned Collins, a trader at Daiwa Securities America, who said his faith in the NYSE remained intact despite the episode. "I don't think the delay was a big deal, though some people are making a big deal out of it. It's summer, and this was probably going to be a slow Friday anyway."

Juniper Networks fell $8.61 to $38.02 on news it was lowering its forecast for second-quarter results and cutting 8 to 9 percent of its work force because of sluggish demand for its networking products.

Declining issues outnumbered advancers by about 4 to 3 on the New York Stock Exchange.

Internet cigarette ban blocked

NEW YORK - Enforcement of a state law banning cigarette sales over the Internet has been blocked by a federal judge who says it is unconstitutional despite its "commendable" intentions.

U.S. District Judge Loretta Preska had stopped the law's enforcement temporarily in November after a preliminary study of the arguments offered by Brown & Williamson Tobacco Corp. in a lawsuit in Manhattan.

On Friday, the judge ordered a permanent halt to enforcement after a five-day trial that concluded April 30.

Golf firm enters earnings sand trap

LOS ANGELES - Shares of Callaway Golf Co. fell more than 20 percent Friday after the golf equipment maker warned that second-quarter earnings would be much lower than expected.

The Carlsbad-based company blamed unusually bad weather, a slowing world economy and negative comments by the U.S. Golf Association about one of its drivers.

National sales for the company's $500 titanium ERC II have dramatically slowed since the USGA made statements to country clubs that the driver gives players an unfair advantage, spokesman Larry Dorman said.

Striking Comair pilots agree to talks

WASHINGTON -- Comair and its striking pilots agreed Friday to return to the bargaining table in hopes of resolving a two-month-old strike that has shut down the nation's second-largest regional airline.

The agreement to resume negotiations was announced after company officials and representatives of the Air Line Pilots Association met for 3 1/2 hours with Transportation Secretary Norman Mineta.

Talks will resume Tuesday with federal mediators, and both sides agreed to try to reach agreement within 72 hours.

Union officials would not comment after the meeting with Mineta.