Stocks slipped on Monday as investors readied for a rush of corporate scorecards amid the rising threat of bioterrorism and a second week of air strikes in Afghanistan ( news - web sites ). 
"In the short term, I don't see much light," said George Rodriguez, senior vice president of equities at Guzman & Co. "However, as we look further down I can only be positive toward the economy and various sectors. This economy is not shattered and will not be shattered." 
This week marks the most hectic period for third-quarter earnings, with 180 of the Standard & Poor's 500 companies set to post their results. Analysts expect the biggest drop in earnings in a decade as the economy struggles to escape recession, according to research firm Thomson Financial/First Call. 
The market moved off its lows in the late morning, but tension remained. The United States took its military campaign in Afghanistan into a second week to force the ruling Taliban to hand over Osama bin Laden ( news - web sites ), while cases of anthrax in Nevada, New York and Florida have fueled fears of a biological assault on the nation. 
Monday's winners included companies that may be crucial to combating a chemical or biological attack, but chip stocks slumped amid worries over corporate profits. Investment house J.P Morgan cuts its rating on chips makers like PMC-Sierra Inc. (PMCS.O), saying the stocks were too pricey. 
The technology-laced Nasdaq Composite Index (.IXIC) shed 15.16 points, or 0.89 percent, at 1,688.24, after falling more than 2 percent. The blue-chip Dow Jones industrial average (.DJI) lost 67.32 points, or 0.72 percent, at 9,276.84, after losing more than 1 percent. The broader Standard & Poor's 500 Index (.SPX) was down 7.54 points, or 0.69 percent, at 1,084.11. 
Stocks had rallied in the past three weeks, boosted by a handful of upbeat corporate results and hopes that increased government spending and lower interest rates will spur economic growth. But investors are keeping up their guard as the government promises a lengthy war on terrorism after the Sept. 11 attacks. 
Cepheid Inc. (CPHD.O), whose products help detect biological agents, jumped more than 11 percent, or 90 cents to $8.68. Detection system maker Nanogen Inc. (NGEN.O) rose 76 cents to $9.37. Both added to stellar gains last week as anthrax cases fuel fears of biological warfare. 
The Philadelphia Stock Exchange semiconductor index (.SOXX) fell 4.60 percent. Intel Corp. (INTC.O), the world's No. 1 maker of computer chips, dropped 68 cents to $24.34, pressuring both the Nasdaq and the Dow ahead of its earnings after Tuesday's close. 
JP Morgan cut its rating on five communications chip makers, saying the stocks are overvalued. Applied Micro Circuits Corp. (AMCC.O) fell $1.41 to $11.69. Xilinx Inc. (XLNX.O) dropped $2.23 to 29.63. Altera Corp. (ALTR.O) lost $2.33 to $20.82. PMC-Sierra sank $1.97 to $16.83. Vitesse Semiconductor Corp. (VTSS.O) surrendered $1.03 to $10.32. 
United Therapeutics Corp. (UTHR.O) sank $6.03 to $10.33. The company said preliminary results of a U.S. trial of a compound for treatment of intermittent pain when walking resulting from peripheral vascular disease did not confirm the findings of an earlier trial in Europe. 
Dutch banking and insurance group ING Groep NV (ING.N) fell $4.26 to $24. The company joined the list of financial firms suffering from the global slowdown, slashing its 2001 profit forecast and sending its shares tumbling more than 14 percent. 
Profits for S&P 500 Index companies are expected to shrink by 22.4 percent this quarter, making it the worst quarter since the second quarter of 1991, according to Thomson Financial/First Call. 
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