Nasdaq Sets A New Record

Blue-chip shares ended Tuesday's choppy session in negative territory while technology issues carved out tiny gains to lead the Nasdaq into record terrain for a second consecutive session.

The Dow Jones Industrial Average ended off 43.84 points to 9,963.49 a day after setting a record close at 10,007.33.

"We just ran out of steam. Sell programs came in, but after the run-up Monday it's not surprising," remarked Ned Collins, head of trading at Daiwa Securities. "It's such a nervous market because we're in uncharted waters [and] every piece of news is magnified."

Meanwhile, the technology-laden Nasdaq Composite rose 0.1 percent, or 3.10 points to 2,563.17.

Internet stocks shot ahead, and bellwether Yahoo reached an all-time high of 244 Tuesday, blasting through the previous high of 222 1/2. Yahoo ended off 4 1/4 to 214 7/8. AOL (AOL) also shot higher, rising 1/2 to 167 1/2. With 34.3 million shares changing hands, it was the volume leader on the NYSE.

Earlier in the day, news that Serb TV had reported Yugoslavia declared a unilateral cease-fire produced some gains. However, reports soon emerged that the cease-fire was only temporary and would stay in effect only during the Orthodox Easter holiday. This realization dampened sentiment immediately and the White House later announced that the attacks on Serbia would continue.

IBM, a component of the Dow, lost ground amid the afternoon selloff after rising on news that the company had introduced what it labels "the world's fastest" Web server geared toward e-business customers and Internet service providers. IBM shares edged down 15/16 to 183.

Shares of Gillette limped 7 5/8, or 13.2 percent, to 50 1/8. The company announced after the closing bell Monday that it expects first-quarter earnings to come in a penny below analysts' estimates of a profit of 25 cents a share. Sales growth in the quarter are also expected in the low single digits. However, sales in the company's razors and blades business is expected to generate "double-digit" sales. Adding to the sour tone, Morgan Stanley Dean Witter downgraded the consumer products manufacturer to neutral from outperform on Tuesday.

In Tuesday's market indicators:

• Standard & Poor's 500 Index subtracted 0.2 percent.
• On the New York Stock Exchange, declining issues outpaced advancers by 18 to 12.
• Advancing issues trailed decliners by 24 to 16 in the Nasdaq Stock Market.
• Volume on the Big Board totaled 785 million while Nasdaq volume reached 1.099 billion.
• The Russell 2000 index of small-capitalization stocks lagged, shaving 0.3 percent.
• The 30-year Treasury climbed a full point to yield 5.52 percent.

• Intel (INTC) is seen cutting prices from 10 to 20 percent for most of its products next week, including its newest Pentium III chips, ahead of launching some faster processors later in the moth, Reuters reported. Meanwhile, the microprocessor giant announced after the market closed Monday that it plans to invest $30 million in Lernout & Hauspie Speech Products (LHSP). Shares rose 2 15/16 to 130 7/16.
• Elsewhere, automated semiconductor wafer processing company Silicon Valley Group (SVGI) warned that second quarter revenue would be 30 percent below first quarter revenue of $85.5 million. The maker of semiconductor equipment attributed the fall in quarterly revenues to lower than expected sales of its lithography products caused by the timing of customer requirements and a minor production delay of its latest laser-based lithography product. The company will report earnings on April 21. Shares fell 17/32 to 13 1/32.
• Dell (DELL) rose on news that it had taken an equity stake in Red Hat, a leading supplier of Linux software, and was now offering to install Linux on a number of its computers. Reuters reported that world's No.1 direct-sale computer vendor had signed up a new corporate customer, Burlington Coat Factory Warehouse (BCF), to purchase 1,250 desktop PCs running Linux as its operating system software. Shares added 2 3/4 to 46 13/16. The dominator of operating systems Microsoft (MSFT) lost 7/8 to 94 1/16.
• Among other computer issues, Compaq Computer (CPQ) edged down 3/4 to 30 13/16. Compaq presented an online software store which offers more than 5,000 software titles. The store is operated by Beyond.com (BYND).
• CBS Corp. (CBS) shares roared to an all-time high Tuesday on speculation that the entertainment company will be acquired by Internet access provider America Online. Shares piled on 1 13/16 to 43 11/16. A spokespeople for both CBS and AOL declined to comment on the talks.
• Yahoo! (YHOO) struck a distribution agreement with Micron Electronics (MUEI) under which Micron's Millennia PCs will feature Internet services offered by Yahoo! The Micron Millennia PCs are customized to display both Yahoo!'s Web directory capabilities and personalized Web pages. Yahoo shares fell 4 1/4 to 214 7/8 while Micron put on 1/4 to 11 11/16. Yahoo! will report first quarter earnings on Wednesday. The First Call consensus estimate stands at 8 cents a share, compared to 2 cents a year ago.
• RealNetworks (RNWK) plowed ahead, bolstered by news that Donaldson Lufkin & Jenrette analyst Jamie Kiggen initiated coverage with a "buy" rating and a price target of $250. Shares spurted 40 15/16, or 26.5 percent, to 195 7/16.
• MCI WorldCom (WCOM) is reportedly in preliminary talks to purchase Nextel Communications (NXTL). See full story. MCI fell 2 15/16 to 89 9/16 while Nextel lost 7/16 to 39 3/16.
• Reuters Group Plc (RTRSY) entered an agreement to be the primary provider of financial news and market data to E-Trade branded investment services Web sites worldwide. Under the deal, Reuters will provide customers and members of E-Trade (EGRP) Web sites with domestic and international equities news, cmpany news by country and delayed and/or real-time quotes on stocks, indexes and derivatives. E-Trade added 3 3/8 to 76 while Reuters gained 1 13/16 to 90 11/16.
• Allied Holdings (AHI) shares fell 2 7/8 to 6 1/2 Tuesday after the company announced it expects first quarter results to come in below analysts' expectations. Analysts surveyed by First Call expect the company to post a loss of 5 cents a share in the quarter.
• Shares of TCI Music (TUNE) roared ahead 253 percent after the company announced that it has received a proposal from Liberty Media Corporation for a deal in which Liberty would contribute its Internet and interactive television assets, including those held by its wholly owned subsidiary, Liberty Digital, to TCI Music in exchange for newly issued shares of TCI Music's Series B common stock. Liberty's Class A shares (LMG.A) rose 3 1/8 to 59, while the Class B shares (LMG.B) added 3 1/4 to 59 1/2.