Nasdaq Sets Record; Dow Falls 138 Points
Blue-chip stocks fell steeply amid worries that rising interest rates will ultimately cut into corporate earnings, while signs of strong growth from leading technology companies boosted the Nasdaq further into record territory.</br></br>The Dow Jones industrial average fell 138.06 to close at 11,351.30. The Dow pitched wildly during the session, rising as much as 68 points early and plunging as much as 214 at midday.</br></br>The Nasdaq composite index rose 38.22, to 4189.51, extending the record high reached the day before. The Standard & Poor's 500-stock index fell 10.33, to 1445.57.</br></br>Stocks rose at the opening bell after IBM, which sent a chill through the technology sector last fall when it said sales had slumped because of worries about year 2000 computer problems, easily beat Wall Street's profit forecasts.</br></br>Alcoa dropped 4 5/8, to 73 1/2, as the company announced plans to restart primary aluminum production to meet growing global demand. The announcement sparked fears that aluminum prices will drop, hurting Alcoa's bottom line. A steady rise in aluminum prices last year helped Alcoa turn in the highest returns of any Dow component stock.