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Dow falls 48.44
Associated PressNEW YORK -- Stocks fell today as troubled investors responded to weaker-than-expected corporate earnings reports that overshadowed signs of moderating inflation. The Dow Jones industrial average closed down 48.44 at 10,685.12. The Standard & Poor's 500 index fell 15.90 to 1,464.29, and the Nasdaq composite index dropped 112.88 at 3,981.57.
Decliners beat advancers by a 3-to-2 margin with 1,742 down, 1,105 down and 484 unchanged on the New York Stock Exchange, where volume came to 873.40 million shares vs. Friday's 970.15 million. The NYSE composite index slipped 4.38 to 651.00; the American Stock Exchange index sank 9.40 to 918.24; and the Russell 2000 index was off 8.45 at 514.25.
The 30-year Treasury bond fell 12/32 point, or $3.75 per $1,000 security, as its yield rose 3 basis points to 5.82 percent. The 10-year note fell point, pushing its yield up 3 basis points to 6.03 percent.
Stock investors spent most of last week punishing the stocks of technology companies that are not living up to high earnings expectations, and that pattern continued today. The trend began when such industry bellwethers as Microsoft, Apple and Intel beat analysts expectations -- but barely.
Shares of Corning Inc. sank today on news that the company is in talks to buy Nortel Networks Corp.'s fiber-optic parts unit in a deal worth more than $100 billion. The move would make Nortel the majority shareholder in Corning. Nortel's shares fell also.
The Dow Jones average might have fallen farther if not for a strong earnings report from drug company Merck & Co., whose shares were up $5.89 at $69.64.