The Nasdaq was pulled lower by declines in Nextel Communications, Altera, Intel and Microsoft.
Technology stocks were hammered again yesterday, pulled lower by disappointing reports from Motorola and Biogen.
The S.& P. was pulled lower by General Electric and AT&T.
Official figures showed inflation was down from zero in August to -0.1% in September, pulled lower by cheaper fuel prices.
But the technology sector was pulled lower by the chip equipment maker Applied Materials, which said first-quarter orders would decline 35percentt, rather than the 20percentt previously projected.
The Standard & Poor's 500-stock index lost 3.28 points, or 0.38percentto to close at 939.15, pulled lower by financial companies and retailers.
In early trading, the Dow fell 143 points, or 1.3percentt, and the Standard & Poor's 500-stock indroppedpped 27 points, or 1.9percentt, both pulled lower by their technology components.
Morgan Stanley said yesterday that net income in its third quarter fell 13percentt from a year earlier, pulled lower by sour financial markets and a poor environment for investment banking.
The Dow spent most of the day down, pulled lower by disappointing results from I.B.M., whose shares slipped 8.28 percent, to an even $190.
