Conflicting forces put stocks on a seesaw during the third week of trading since the Sept. 11 attacks aggravated the U.S. economic slump. The ninth interest-rate cut of the year and a promised economic stimulus package from Washington countered more earnings warnings from corporations and the Department of Labor's report of the worst employment numbers in 10 years. The market recovered some of the ground lost after Sept. 11; 29 AdMarket stocks were up and 21 down for the week.
Companies that cut their earnings forecasts-such as McGraw-Hill, Cordiant, and Publicis-were punished by the market; both Digitas and Primedia hit 52-week lows. Yahoo!, which told analysts it expects to meet its forecasts when it reports Oct. 10, performed well, as did blue chips such as Sears, DaimlerChrysler and Microsoft, which investors see as safe bets in a downturn.