Dow, Nasdaq Close Lower After Failing to Hold Late-Day Gains

Updated from 2:34 p.m. EDT

Blue-chips and tech stocks closed lower, as the major averages failed to hold a late-day attempt to stay in positive territory.

The Dow Jones Industrial Average lost 40.82 points, 0.4%, to 10,382.35. The Nasdaq slipped 4.38 points, or 0.2%, to 1912.42, and the S&P 500 was down 5.71, or 0.5%, to 1179.22.

Lucent (LU Quote) was the most active issue on the New York Stock Exchange , where it traded up 31 cents, or 4.4%, to $7.33. Taiwan Semiconductor(TSM Quote) moved higher, trading up 25 cents, or 2.1%, to $12.25.

Biopure(BPUR Quote) was up $4.65, or 23.4%, at $24.55, after the company said a statistical analysis proves its human-blood substitute is safe. eBay(EBAY Quote) shed $2.61, or 4.4%, to $56.40 at the close of the regular session.

The 10-year benchmark Treasury note was recently down 1/32 to 100 17/32, yielding 4.932%. Among sectors, chipmakers fared well while banking stocks sold off.

In overseas activity Japan's Nikkei 225 traded up 109 points, or 1%, to 11,275 with tech stocks leading the way. Hong Kong's Hang Seng rose 125 points, or 1.1%, to 11,235. London was closed for a bank holiday.