NEW YORK REPORT: Stocks fell yesterday, extending losses after news of a management shake-up at Freddie Mac kindled fears about the stability of the number two US mortgage finance company and a housing market that has helped keep the fragile economy afloat.

Dow Jones Industrial Average: 8,980.00 (-82.79)

Technology stocks slipped on news Motorola, the world's number two mobile phone maker, cut its estimates of second-quarter sales and earnings, blaming lower-than-expected phone sales in Asia after the SARS outbreak. Motorola shares sank 2.4 per cent, or 21 cents, to $8.68.

The Dow Jones Industrial Average declined 82.79 points, or 0.91 per cent, to 8,980.00, according to the latest figures. The broader Standard & Poor's 500 Index shed 10.65 points to 977.12. The tech-laced Nasdaq Composite Index fell 23.45 points, or 1.44 per cent, to 1,603.97.

Freddie Mac said it fired its president and chief operating officer for not fully co-operating with a review of its earnings statements from 2000 through 2002. Shares in Freddie Mac fell $9.61, or 16 per cent, to $50.26. Boeing shares weighed on the Dow after it ran advertisements in five newspapers in an effort to prevent a current criminal investigation from tarnishing its reputation. The number two US defense contractor was the biggest percentage loser on the Dow, falling $1.69, or 4.85 per cent, to $33.17.