Dow drops 63
as bonds rally

NEW YORK -- The Dow Jones industrial average tripped again today in a run at 8,000 as persistent earnings worries overshadowed another improvement in interest rates.

For the fourth time in five sessions, the Dow bobbed above 8,000, only to retreat. Today, the Dow surrendered an early 65 point gain and finished the day down 63.35 points to close at 7,906.71.

Decliners beat advancers by a slim margin on the New York Stock Exchange, with 1,446 up, 1,458 down and 498 unchanged. NYSE volume was a hefty 639.46 million shares up from 522.25 million yesterday.

Broader stock indicators also gave back sizable gains despite a drop in interest rates in the bond market, which resumed its recent rally after a one-day stumble.

The Standard & Poor's 500 index fell 7.45 to 944.48. The NYSE composite index dropped 2.68 to 494.27. The Nasdaq composite crossed 1,700 for the first time, but then fell, ending down 9.95 points at 1,687.41. The Russell 2000, which had also closed at record highs 17 times in the prior 19 sessions, fell 0.84 to 448.58. The American Stock Exchange composite index onto a small gain, rising 0.62 to 686.07.

Meanwhile, the price of the Treasury's main 30-year bond was up 29/32 point, or $9.06 per $1,000 in face value, by late afternoon, while its yield fell to 6.32 percent from 6.38 percent late yesterday. Bond prices and yields move in opposite directions

Although no major companies warned of disappointing profits today, investors remain too jittery about third-quarter reports -- not due for several weeks -- to bid the blue-chip sector back to record levels, analysts said.