High-Tech Rally Falters; Dow Tumbles 43.36

Stocks slid further Tuesday with higher interest rates making bonds an increasingly enticing option in an uncertain climate for corporate profits.

Blue-chip issues were hit hardest again, while technology and other more speculative shares edged lower after another failed attempt at restarting their recent rally.

The Dow Jones industrial average fell 43.36 points to 5,420.95, flirting with its first close below 5,400 since early February.

The barometer of 30 big U.S. companies - now down more than 4.5 percent from its all-time high of 5,689.74 on April 3 - has been struggling amid inflation worries and the persistent rise of bond yields.

Broader blue-chip measures were negative too. Declining issues outnumbered advancers by about 4 to 3 on the New York Stock Exchange, where volume totaled 406.69 million shares as of 4 p.m., up from Monday’s pace.

Bond yields, meanwhile, edged higher. The yield on the 30-year Treasury bond - a benchmark for the rates charged on many types of loans - increased to about 7.07 percent.

Some of the stocks that moved substantially or traded heavily Tuesday:

NYSE

Zenith, down 5-5/8 at 17-1/4.

The stock retreated after almost quadrupling in the week since Zenith announced plans to enter the on-line business with two modems that will enable cable operators to offer subscribers Internet access. Some traders took profits and analysts cautioned that the stock may now be fairly valued.

Cinergy, up 7/8 at 28-7/8.

General Public Utilities, up 3/8 at 31-3/8.

Midlands Electricity of Britain said it has agreed to be purchased for 1.73 billion pounds, or about $2.59 billion, by a partnership between the two U.S. utilities.

NASDAQ

Comparator Systems, down 1/8 at 7/8.

The shares continued to trade wildly, breaking the one-day Nasdaq volume record for the third straight session. On Monday, Comparator announced plans to unveil some new identity verification systems. The stock rose 75 cents, or 267 percent, on Monday, and rose another 78 percent Tuesday before plunging.

Curtis Mathes Holding, up 1-1/4 at 2-5/8.

The big-screen television maker announced recently that it plans to unveil an interactive model with on-line and Internet capabilities.

Apple Computer, up 1-1/4 at 26-7/8.

The stock rose for a second day after IBM announced an arrangement to use and resell the software that runs Apple’s Macintosh computer. Although IBM has no immediate plans to make the Mac, the move is designed to help IBM sell the PowerPC computer chips it co-developed with Apple and Motorola.