Wall Street: Wednesday close

BOEING's big earnings miss deflated Wall Street's 'profits are not as bad as expected' party as Federal Reserve chairman Alan Greenspan provided little reason to rush out and buy shares.

The Dow Jones Industrial Average, which had soared 207 points on Tuesday, fell 80.54 points or 0.8% to 10,220.78. The Nasdaq Index, up 3.5% in the previous session, fell 5.93 to 1810.86.

Much attention was paid to Greenspan's televised testimony before Congress, but the main conclusion from his words - that interest rates will probably not be raised for a while - was hardly news to people who divine market intricacies on a daily basis.

Earnings reports held more punch with Boeing's $1bn loss sobering investors spoiled by a series of better-than-expected quarterly reports from the likes of General Motors, Intel and Ford.

The aircraft manufacturer said things would have been a lot better without a $1.8bn charge to reflect the falling value of satellites it bought from Hughes Electronics in 2000. But investors were not in a forgiving mood, driving down Boeing shares $3.33 or 6.8% to $45.37.

General Motors, which helped inspire Tuesday's rally with its upbeat results, rose another 90 cents or 1.4% to $64.95. And even an $800m loss from Ford fell into the 'better than expected' column, sending its shares up 32 cents or 2% to $16.18.

Intel, which came out with stronger than anticipated quarterly results after the close on Tuesday, jumped $1.13 or 3.8% to $30.64. But that failed to inspire the tech sector after the big gains of the previous session. Microsoft retreated $1.18 or 2% to $56.63. IBM, which reported lower profits in line with expectations after the close, gave up $1.70 or 2% to $84.50.

Financials were stronger as analysts interpreted an 18% drop in first quarter profits by JP MorganChase as a reason to buy. JP Morgan shares gained $1.89 or 5.3% to $37.27. American Express surrendered an early gain to close down 21 cents or 0.5% to $41.15.

Market bellwether General Electric, which has seen heavy selling over the past week since it came in on the light side of quarterly expectations, recovered another 55 cents or 1.7% to $33.65.