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Nasdaq Back Below 4000

The Nasdaq fell back below 4000 on Friday, weighed down by several earnings warnings and a disappointing conference call from Kulicke and Soffa.

The ISDEX fell 31 to 789, while the Nasdaq lost 119 to 3978. The S&P 500 dropped 8 to 1494, and the Dow slipped 39 to 11,220. Volume declined to 960 million shares on the NYSE and 1.5 billion on the Nasdaq. Decliners led 15 to 13 on the NYSE and 25 to 15 on the Nasdaq. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our new after hours trading site.

National Discount Brokers warned that the company would post a 6-9 cent loss because of difficult market conditions, instead of the 9-cent profit analysts expected. The stock plunged 8 to 27 13/16. E*Trade slipped 15/16 to 18 1/8, and Ameritrade lost 1 1/4 to 19 9/16.

Yahoo continued to fall on Internet advertising concerns, off 2 1/16 to 104 7/8. But the stock found support at 99 3/4, just above its July low of 99 1/2. DoubleClick fell 2 3/4 to 33 1/2, and Engage lost 1 1/2 to 10. CS First Boston reiterated Strong Buy on DoubleClick ahead the company's Sept. 11 meeting with analysts.

CMGI continued to get a lukewarm reception to its reorganization plan, losing another 3 7/8 to 39 5/16. For more on the story, click here.

But the beleaguered Internet consultant sector found some takers on a William Blair & Co. upgrade of Scient , which soared 6 1/2 to 27 1/4. The firm said it expects Scient to make its numbers this quarter. Proxicom added 2 1/32 to 22 1/32, Sapient rose 3/4 to 48 5/8, but down from a high of 53, and Viant slipped 1/4 to 7 5/8 on a Robertson Stephens downgrade.

Telecom equipment stocks were lower on a Wall Street Journal article that said the declining revenues faced by traditional telecom stocks could lead to a slowdown in equipment spending. Cisco fell 2 3/8 to 63 7/8, Juniper Networks was down 18 21/32 to 196 7/32, and Northern Telecom fell 4 13/16 to 72 3/16.

Aether Systems slipped 2 13/16 to 141 3/16 after trading as high as 151 on a Lehman Brothers Buy rating and $210 price target.

BroadVision gave back 2 7/16 to 35 1/2 after confirming rumors of an alliance with IBM. The stock had run up on the rumors yesterday. NaviSite gained 7/32 to 45 5/32 after announcing an alliance with Compaq and EMC.

OTG Software rose 3/4 to 34 on a second day of positive analyst comments, this time from CS First Boston.

Commerce One gained 11/16 to 71 3/16 a day after closing above the important 70 level. The company is expected to announce additional contract wins in the near future. But Ariba lost 7 3/8 to 154 1/2, and i2 fell 9 5/16 to 160 1/2.

Tvia soared 3 1/2 to 15 3/4 on news of an alliance with Wind River Systems.

Some technical comments on the market: The Dow broke its rising wedge to the downside this morning, so now all the major indexes have broken their uptrends that began a month ago. They all have downside potential to last month's lows, but there are a number of important support points that could bring a halt to the selling before then. The Dow has so far held 11,200 support; 11,100 is next, then 11,000, and then the important support of 10,900, the upper boun