By Clyde Noel

Stock Report

Look for a new market low in October. The only new money coming to the market are a few novice investors trying to trawl the market bottom.

Look for another tense time this week as mounting talk of war and a steady patter of profit warnings keep investor’s wallets shut. Investors are hampered. They see no rush to check for bargains.

The Dow Jones average lost 326-points, or 3.9 percent last week closing at its lowest level since October 1998. The Nasdaq fell 70 points and the Town Crier index fell 7.5 percent to it’s lowest of the year. Since Jan 1. the Town Crier index is down 40.6 percent. A loss of $20,000 on a $50,000 investment.

The earnings warning season starts this week, as many corporations will confess their third-quarter earnings will be shy of analyst’s estimates. If the confessional period is like the previous two quarters, look for dismal expectations of profit in the sluggish economy.

There is some very interesting reaction to the slumping markets in stockbroker offices. Last week, Bear Stearns Co. became the latest brokerage house to abandon its “business casual” dress. It sent every employee an e-mail requiring formal work attire as of Sept 30. Lehman Brothers also reinstated it formal business dress policy previously.

The e-mail stated: “it is important, particularly in these difficult economic times, that every aspect of our business, including our dress, reflect our ongoing commitment to our clients and our business”

Business casual is fast becoming another casualty of the dot-com bust. The casual workplace Internet companies glorified, is going out-of-favor. Venerable business wear retailer Brooks Brothers welcomes back the trend, but as an investor it doesn’t mean much because brokers will brush off the suits stored in their closets.

Locally, Oracle Corp. tycoon, Larry Ellison resigned from Apple Computer Inc.’s board of directors. This is a trend where pressures from investors are prompting changes for a more vigorous oversight of a company’s direction.

According to Securities and Exchange Commission filings, Ellison attended less that three-quarters of Apple’s board meetings during his five years as a director. Ellison stepped down after concluding that his attendance record wouldn’t improve in the coming months because of his bid to win the America’s Cup yacht race. Oracle stock is currently under 10.

Saber rattling continues to spook the market. There must be new developments before the market will respond. How quick the United Nations will try to get Iraq to accept a compromise is burdensome on the market.

Investors fear that conflict could spread into other countries in the Gulf Region and higher oil prices will hamper corporate growth.

An investor’s rule of caution: The market will most often follow political events more than any positive economic figures.