Terror, War Fears Undo Rally

An early rally on Tuesday turned to selling on news of a new bin Laden tape and Iraq’s rejection of a UN peacekeeping force.

The Nasdaq slipped 1 to 1295, the S&P 500 lost 6 to 829, and the Dow dropped 77 to 7843. Volume rose to 1.29 billion shares on the NYSE, and 1.32 billion on the Nasdaq. Decliners led 19-13 on the NYSE, and 17-14 on the Nasdaq. Downside volume was 69% on the NYSE, but only 43% on the Nasdaq. New highs-new lows were 41-107 on the NYSE, and 39-99 on the Nasdaq.

After the close, Applied Materials missed estimates. Sycamore beat estimates, and Network Appliance beat revenue estimates.

During the day, priceline fell 10% on mixed results.

Microsoft fell 2% on news of new antitrust complaints.

Baby Bells SBC , BellSouth and Verizon fell on an FCC ruling delay. Meanwhile, Sprint won a round in its fight to hire BellSouth’s vice chairman.

Dell rose 1.7% ahead of Thursday’s earnings report.

Texas Instruments climbed 2.6% after reaffirming guidance.

Cisco , up 2.4%, is targeting call centers.

Qualcomm , up 0.1%, announced a dividend and stock buyback.

Marvell , up 3.3%, unveiled a Gigabit Ethernet switch.

BEA , up 1.7%, announced a security acquisition.

Hoover’s fell 6.5% as a bidding war for the company cooled down.

Proxim rose 5.7% on price cuts.

Veeco and TheStreet.com rose on their earnings reports.

Handspring , up 1.2%, announced a developer program.

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