US blue chip stocks slipped to their biggest point loss in one month as earnings jitters heightened and traders used a market rumour, later denied, that Russian President, Mr Boris Yeltsin, had died as an excuse to take profits.

The Yeltsin rumour was "just one excuse. The real essence of the decline was the fear of earnings and, from a technical standpoint, the market's failure to close above 6,000 over the last two days," said Mr Peter Cardillo, director of research at Westfalia Investments.

The Dow's loss was the biggest since September 5th's 49.94 point drop and followed the composite 26 point fall off since the beginning of the week. Birinyi Associates tracked five sell programmes in the morning and early afternoon that wiped 65 points off the Dow.

The technology laden Nasdaq ended only modestly lower, off 2.17 to 1237.98, as most chip stocks maintained strong gains after a bullish September book to bill report.