Wall Street: Thursday close

WARY investors sent stocks lower on Thursday, despite forecast-beating figures from

The decline signalled that investors were pacing themselves and waiting for more earnings results before making any major commitments to stocks. 'We have a lot more to go. There is a lot more of the (earnings) reporting season ahead of us,' said Tony Cecin, director of institutional trading at US Bancorp Piper Jaffray. 'The market is just going to crank its way through the next three or four weeks.'

Analysts said investors were also worried about the possibility of war with Iraq following news Thursday that United Nations inspectors found 11 empty chemical warheads at an ammunition storage area.

Among losers, Microsoft declined 81 cents to $55.46 ahead of its fiscal second-quarter earnings report due out after the close of regular trading.

IBM fell $1.54 to $86.05 ahead of its fourth-quarter results also due out later. After the market closed, IBM reported earnings that beat analysts' expectations and its stock rose 5 cents in the extended-hours trading session.

'The earnings have been kind of mixed. Like Intel's earnings were good, but they said their capital spending would be down. So that put a drag on the market,' said Barry Berman, head trader for Robert W. Baird & Co. in Milwaukee.

After the market closed Tuesday, Intel reported better-than-expected earnings but also said it was reducing capital spending this year by roughly $1bn. The chip maker traded lower Thursday, down 15 cents at $17.20.

News was also mixed on Yahoo, which late Wednesday posted quarterly earnings of 8 cents a share, surpassing analysts' forecast for a 6-cent profit and beating last year's 2-cent loss. But on Thursday, Credit Suisse First Boston downgraded Yahoo on concerns the stock was overvalued and the internet company fell 83 cents to $18.75.

But some earnings results helped stave off larger declines. Sears climbed $1.88 to $28.58 after topping fourth-quarter forecasts and United Technologies soared $1.81 to $66.21, also after beating expectations.