US stocks slide again on earnings worries

Earnings worries have thwarted the US stock market for a second straight session.

The Dow Jones closed higher 13.71, or 0.1%, at 9,799.06, while the Nasdaq slipped 33.56, or 1.8%, to 1,820.57.

The Standard & Poor's 500 dropped 5.34, or 0.5%, at 1,147.95 and the Russell 2000 slid 0.67 to 441.53.

Trading fluctuated throughout the session, sending the major indexes higher for a few hours and then back down.

An earnings warning from Coca-Cola Enterprises sent the stock down $3.02 to $18.10, a 14% decline. The company bottles beverages for Coca-Cola, which fell $1.43 to $44.52.

International Paper dropped seven cents to $36.15, after reducing its first-quarter outlook because of weak business conditions.

Technology issues were pulled lower by continuing losses in Nortel Networks, down 50 cents at $13.50. Nortel's warning on Tuesday of lower-than-expected earnings and more job cuts cut short a market recovery that had begun late last week.

But drug stocks, a favourite in times of economic weakness, moved higher. Dow component Johnson & Johnson rose $2.10 to $88.38.

The market's sour mood reflects a mix of worry about the economy and doubts about when the Federal Reserve will next lower interest rates. The Fed, which has already cut rates three times this year, is expected to act again at its mid-May meeting.

Advancing issues outnumbered decliners 15 to 14 on the New York Stock Exchange. Volume came to 938.300 million shares, compared with 1.01 billion at the same point on Wednesday.