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With confidence badly shaken by the selling in Treasuries and tension high ahead of next week's

Federal Open Market Committee

meeting next Tuesday, stocks closed not too far from their session lows. It was a very bad day.


Dow Jones Industrial Average

fell 193.87, or 2%, to 10,913.32, while the broader

S&P 500

dropped 29.76, or 2%, to 1337.80.

The basic rule for the day was the higher the multiple the higher the fall. While the damage on the value and cyclical side of things was limited, traditional growth areas like tech and drugs were hurt badly. The tech-tumescent

Nasdaq Composite Index

fell 54.13, or 2%, to 2527.87, while the

American Stock Exchange Pharmaceutical Index

fell 11.90, or 3%, to 369.50.

Those Uber-growth issues, the .coms, also took their lumps. Internet Sector

index fell 12.17, or 2%, to 629.53.

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The small-cap

Russell 2000

fell 7.71, or 2%, to 443.13.

The 30-year bond fell 2 6/32 to 90 24/32, lifting the yield up to 5.92%.

Major European indices finished lower, with London's


having gotten the worst of it, off about 2.4%. Asian markets slumped overnight, with Hong Kong's

Hang Seng

slipping 198.15 to 12,855.52. Tokyo's


dropped 40.86 to 16,810.39 as Governor

Masaru Hayami

said the

Bank of Japan

will maintain its easy money policy until deflationary concerns have subsided.

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(BA) - Get The Boeing Company Report

is cutting between 6,500 and 7,000 jobs at its St. Louis military aircraft plant because of a dearth of orders for F-15 fighter jets. The cuts come after

Lockheed Martin

(LMT) - Get Lockheed Martin Corporation Report

last month won a $3.5 billion contract to supply Greece with F-16s, and Israel postponed a $2.5 billion F-15 order two weeks ago.

Dutch agricultural and construction equipment maker

New Holland

is in merger talks with Wisconsin-based




The Wall Street Journal

reported, citing people familiar with the matter.

Personal effects and nutrition product marketer

Nu Skin Enterprises

(NUS) - Get Nu Skin Enterprises Inc. Report

filed with the

Securities and Exchange Commission

for a secondary offering of 10 million Class A common shares, the proceeds going to the family of company founder and Chairman Blake Roney.

Baby Bell

U S West


is lifting a bit after


reported that it has held merger talks with undersea fiber-optics firm

Global Crossing


. U S West rose 2 1/4 to 62 1/4, while Global Crossing advanced 15/16 to 61 3/8.

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(ATHM) - Get Autohome Inc. American Depositary Shares each representing four class A. Report



(MSFT) - Get Microsoft Corporation Report

last night set a pact to speed up the deployment of broadband Internet services. Under the deal, @Home will use the

Windows NT

operating system in its

@Home Solutions

network, which brings high-speed Internet access to small markets.

Networking gear maker


(COMS) - Get ComSovereign Holding Corp. Report

is rumored to be a takeover target, according to

Business Week's

Inside Wall Street column. The magazine identified possible bidders as





(LU) - Get Lufax Holding Ltd American Depositary Shares two of which representing one Report


For more tech news and commentary, click


General News


Labor Department

released its

Consumer Price Index

, which unexpectedly rose 0.7% for the month of April, 0.3 percentage points above expectations and up from the previous month's 0.2% increase. The core rate, which excludes food and energy costs, jumped 0.4%, 0.2 percentage points above the forecast and up from last month's 0.1% jump.


war planes knocked out electrical power in several districts of Yugoslavia's three largest cities: Belgrade, Nis and Novi Sad. Meanwhile, Yugoslav media claimed that NATO cluster bombs killed as many as 100 civilians in the village of Korisa, Kosovo. The alliance said it was looking into the report.


World Bank


James Wolfensohn

said the bank will not approve new loans to Russia until the dust settles from Russian President

Boris Yeltsin's

firing of his government two days ago. In the balance hangs a $4.5 billion

International Monetary Fund

loan and another $1.85 billion due from the World Bank.

Nissan Motor


set plans to spin off its auto transmission development business in July to a new subsidiary called



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After seven seasons,

General Electric

(GE) - Get General Electric Company Report



has pulled the plug on its critically acclaimed

Homicide: Life on the Street

. The last episode will run next Friday.

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