To: Dalin who wrote (31775 ) 2/22/2001 4:39:35 PM From: stockman_scott Respond to of 65232 Stocks Bounce Back From Deep Selloff Thursday February 22, 4:21 pm Eastern Time NEW YORK (Reuters) - Stocks fell on Thursday as more corporate earnings woes sparked a panicky morning selloff that knocked the Nasdaq composite index to a low unseen since late 1998, though the market managed a late recovery. Bad earnings news from data-storage giant EMC Corp (NYSE:EMC - news) and Brocade Communications Systems Inc. (NasdaqNM:BRCD - news) spooked the Nasdaq early. The Nasdaq fell 23.97 points, or 1.06 percent, to end at 2,244.97, according to the latest data, while the Dow Jones Industrial average ticked up 0.23 of a point to 10,526.81. The benchmark Standard & Poor's 500 index shed 2.45 points, or 0.20 percent, to 1,252.82. ``There is no theme right at the moment and there is lack of fundamental information coming from companies, so this market is fishing for something that is tangible and substantial,'' said Ned Riley, chief investment strategist, State Street Global Advisors in Boston. ``The only thing they have to focus on is the Federal Reserve policy, which is five weeks away. Until then, you are going to get a lot of opinion and less fact,'' he added, referring to the next Fed policy-setting meeting set for March 20. Early in the day, the Nasdaq dropped 3.6 percent to a low of 2,185.91, an intraday bottom unseen since Dec. 31, 1998. The Standard & Poor's 500 dropped to a low matched only by levels set in March 1999. Year-to-date, the Nasdaq composite is down 9.1 percent, the Dow is off 2.4 percent and the S&P 500 has lost 5.1 percent. The Nasdaq was weighed down early by warnings from EMC and another from Brocade Communications Systems Inc. (NasdaqNM:BRCD - news). The news eroded the data storage sector, one of the last bastions of relative strength in an otherwise beleaguered technology sector. EMC, the most active stock on the New York Stock Exchange, fell $2.60 to $40.35, and Brocade, the third most-active Nasdaq stock, fell $2-3/4 to $41-15/16. The selling pressure spread to peers, including Veritas Software (NasdaqNM:VRTS - news), which tumbled $6-13/16 to $65-9/16.