Periscope

In retaliation, the World Diamond Council--which groups the industry's largest players with powerful support from diamond giant De Beers has launched its own spin campaign. After seeing a leaked script, the WDC met with Warner Bros. to ask the studio to make clear in its marketing campaign, and possibly in the credits, that the situation in Sierra Leone had improved. And last month saw the launch of a Web site that details the council's measures to halt the flow of conflict diamonds as well as the diamond industry's beneficial effects on entire national economies. Around the world, an estimated 10 million people depend on the diamond trade for their livelihoods. A dip in sales--or, worse, a boycott--could cause serious damage to vulnerable populations, argues the council.

--William Underhill and Sean Smith

Click here for an interview with Nicky Oppenheimer, whose family has controlled De Beers for three generations

WALL STREET: It's Just The Dow

Even though the Dow has broken the record that it set on Jan. 10, 2000, the market is nowhere near its record high. That's because the 30-stock Dow Jones industrial average isn't the same thing as the U.S. stock market. Things are going well for large-capitalization stocks--the Dow's up 11 percent for the year, double its 80-year average of 5.5 percent, as calculated by Ibbotson Associates. But it's not a great year for the NASDAQ, which is up only 4 percent and is 54 percent below its 2000 high. As for perhaps the best measure of all, the Dow Jones Wilshire 5000, which includes all U.S. stocks, it's down 9 percent.

-- Allan Sloan