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Equities depressed

NEW YORK: Dow Industrials wiped out most of the gains they made yesterday at midday as the bond market languished and the implications of a stronger dollar on multinational firms weighed on their shares, analysts said.

"Bonds are weak and we are not getting the leadership from technology that we would like," said Paul Rabbitt, senior quantitative analyst at Oppenheimer & Co. "It is part of the process of the market doing some short-term consolidation."

The Dow fell 35 to 4625 erasing most of on Monday's 42 points gain. Declines led advances three to two.

The Nasdaq composite fell four points to 1009 after earlier reaching an intra-day record high at 1016.11.

US treasuries were weak with the long bond down 7/32 to yield 6.97 percent. Earlier the yield had shot up to 7.0 percent on reported comments made by Federal Reserve vice chairman Alan Blinder that the Fed is unlikely to cut interest rates again without evidence the economy is slowing.

US industrial production and capacity utilization data, released earlier, seemed to dash hopes of an early rate cut by showing a stronger than expected economy, analysts said.-Reuter