Dow ends up
0.86 after plunge

NEW YORK -- Stocks rallied back today from an early plunge triggered by news that computer chip giant Intel expects to report disappointing sales and profits.

The Dow Jones industrial average recovered from an early 88-

point deficit, rising 0.86 to close at 7,331.04 with help from the bond market, where interest rates fell amid some new signs that economic activity may be easing enough to keep inflation in check.

Advancers outnumbered decliners by more than a 5-to-3 margin on the New York Stock Exchange, with 1,594 up, 935 down and 842 unchanged. NYSE volume totaled 533.42 million shares vs. 460.48 million yesterday.

Broader measures also rebounded from the early slide, which saw the Nasdaq composite index tumble nearly 50 points, or about 3.5 percent, after a sharp selloff in Intel's shares.

The Nasdaq ended the day down only 2.78 points at 1,400.32.

The Standard & Poor's 500-stock list rose 4.20 to close at 848.28, about 11/2 points shy of a new high; and the NYSE composite index rose 2.92 to 441.78, beating Tuesday's record close.

The Russell 2000 list of smaller companies rose 2.32 to 380.75, closing at a record high for the sixth straight session. The American Stock Exchange composite index rose 2.26 to 605.38.

Before the start of trading, Intel warned that weak demand, especially in Europe, would hurt its results for the April-June quarter.

The announcement aggravated emerging fears that company profits won't justify the stock market's lofty levels.