Stocks ended lower Friday, after a rally in battered technology shares fizzled and blue-chip stocks came under selling pressure from a disappointing earnings report by IBM.
The Dow Jones industrial average fell 143.41 to 9,120.67. The blue-chip index fell as much as 175 points in the morning before trimming its losses, and ended down 219.88 for the week. Friday's volume on New York Stock exchange totaled 785.91 million shares, down from Thursday.
IBM fell 17 5/1 6 to 179 3/4 , accounting for half of the Dow's decline. The world's largest computer maker reported net income of $2.47 a share, beating the average forecast by 2 cents. Estimates ranged as high as $2.51. The company's hardware sales fell 1.5 percent as customers delayed purchases of servers, which control computer networks, while waiting for new models. Friday's drop was the biggest since April 17, 1996. Even so, IBM is up 82 percent in the past year.
In addition to IBM, Dow components were led lower by American Express, down 4 at 98 1/2 ; Merck, down 7 5/1 6 to 139; J.P. Morgan, down 2 3/4 to 103 1/8 ; and General Electric, down 1 7/1 6 to 97 1/8 .
The Nasdaq composite index fell 5.84 to 2,338.88, and the Standard & Poor's 500 index declined 9.97 to 1,225.19.
Internet stocks fell sharply in early trading, extending steep losses logged earlier in the week. They rebounded around midday but ended the session mixed.
"I don't think we're going to stabilize for some time," said Tom Rhinelander, an Internet analyst at Forrester Research. "We still have a huge amount of speculation that's driven this run-up."
Amazon.com Inc. gained 17 to 123, after losing a quarter of its value in the past three days. Yahoo! Inc. rallied 21 to 286, down 31 percent since Jan. 11.
Excite Inc., the No. 2 Internet directory and search service, rose 2 to 87 7/8 , after reporting fourth-quarter earnings of 4 cents a share, matching estimates. Excite agreed to be purchased by high-speed Internet access provider At Home Corp. this week.
America Online Inc., down 9/1 6 to 140 7/1 6, is 15 percent below its Jan. 11 high of 165 1/8 . Nonetheless, the No. 1 online service has a stock market value greater than that of Chase Manhattan Corp., General Motors Corp. or Gillette Co.
BMC Software Inc. rose 5 3/8 to 43 1 5/1 6 after the company, which makes software that helps corporate computer systems manage data, reporting a fiscal third-quarter profit that beat expectations.
J.P. Morgan & Co. and other banks fell on concern they may be saddled with bad debt from companies in Latin America. J.P. Morgan dropped 2 3/4 to 103 1/8 . Chase Manhattan Corp., which has $3.1 billion in exposure to Brazil, fell 3 1/2 to 71 7/8 . BankBoston Corp., which has offices in Brazil and Argentina, fell 1 1/8 to 37 5/8 .
Bond prices rose Friday as investors sought a safe haven from falling stock prices.
The price of the benchmark 30-year Treasury bond rose 7/8 point, or $8.75 per $1,000 in face value. Its yield, which moves in the opposite direction, fell to 5.07 percent from 5.13 percent Thursday.