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AOL, GDP Send Stocks Lower

Dismal earnings from AOL and a weaker than expected fourth-quarter GDP report sent stocks to steep losses on Thursday.

The Nasdaq fell 35 to 1322, the S&P 500 lost 19 to 844, and the Dow dropped 165 to 7945. Volume declined to 1.5 billion shares on the NYSE, and 1.44 billion on the Nasdaq. Decliners led 21-10 on the NYSE, and 22-10 on the Nasdaq. Downside volume was 81% on the NYSE, and 80% on the Nasdaq. New highs-new lows were 46-64 on the NYSE, and 46-69 on the Nasdaq.

After the close, MicroStrategy , NetIQ , Digital Insight , and GlobeSpan Virata beat estimates; Websense and Cray matched estimates; and Commerce One missed.

During the day, AOL fell 14% on a $99 billion loss and the departure of Ted Turner as vice chairman.

Microsoft , off 3.4%, has agreed to make changes to .NET Passport, according to the EU.

Rambus gained another 7.8% after yesterday's legal victory, but the company still faces FTC charges.

Dell , off 4.5%, is launching a retail trial with Sears.

Hotels.com , Expedia and priceline fell on potential competition from the hotel industry, which the Wall Street Journal said may roll out a competing Web site.

eBay , off 1%, launched a business-to-business site.

SAP , off 0.2%, reported a solid quarter.

InfoSpace , Digital River and Neoware gained on their earnings reports, while Foundry , Netegrity , and Maxim fell on theirs.

Digitas gained on its earnings, while eUniverse fell.

Verizon , down 1.3%, continued its fight with the music industry.

TiVo , down 2.7%, scored a deal with 20th Century Fox.

NaviSite , off 3%, announced an acquisition.

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