Geopolitical fears strangle stocks as new Iraq developments arise; HP warning also pressures issues

U.S. stocks fell prey to fears of a possible war with Iraq once again and to some weak news from Hewlett-Packard Wednesday, ending the day lower. The Nasdaq composite (down 25.30 to 1303.68, Charts) logged the widest losses at 1.9 percent, while the Dow Jones industrial average (down 102.52 to 7806.98, Charts) and the S&P 500 index (down 11.02 to 827.55, Charts) both shed about 1.3 percent. The markets managed small gains in a technical rally Tuesday, despite concerns related to Iraq. On the Iraq front, another statement from U.N. Chief Weapons Inspector Hans Blix on the level of commitment from Baghdad, and news that Turkey was pulling its oil tank trucks out of Iraq, shook investors and led them to fear that war was creeping closer. Worries that the United States could be on the edge of an attack on Baghdad has slowly chipped away at the markets in recent months weeks. Meanwhile, an earnings report from tech bellwether Hewlett-Packard indicating that sales for the current quarter would likely fall short of Wall Street estimates also plagued the market.