US REPORT:  Dow Jones: 8,691.33 (-242.85) SP 500: 888.67 (-20.03) Nasdaq: 1,547.34 (-24.40)US STOCKS slid yesterday, halting a two-day advance, after companies from FedEx to Danaher Corp forecast earnings that disappointed investors as the deepening recession crimps sales.

FedEx tumbled 14 per cent, its steepest loss in 21 years, after the second-biggest US package-shipping company projected profit below analysts' estimates amid a "significantly weaker" economy.

Danaher, maker of Craftsman tools, slid 4.2 per cent. JPMorgan Chaseand Wells Fargodropped almost 7 per cent as yields on three-month Treasuries turned negative for the first time, signaling increasing stress in credit markets. About 1.4 billion shares changed hands on the floor of the NYSE, 12 per cent less than the three-month daily average.

FedExfell $10.78 to $63.65 after saying annual profit may be as much as one-third lower than analysts expected. Larger rival United Parcel Servicefell $4.11 to $54.51. Union Pacific. slid 7.4 per cent to $46.90 after Merrill Lynch cut the railroad operator's shares to "neutral".

Con-way Inc, the second-biggest US trucker, reduced its full-year 2008 earnings forecast to as much as 20 per cent less than analysts' average estimate as freight demand fell to 2003 levels. The company also cut 1,450 jobs. The shares slid 14 per cent to $22.19, the lowest level in more than seven years. Danaher Corpfell 4.2 per cent to $49.78. The company said fourth-quarter profit will be lower than previously forecast. Danaher will close 13 factories and cut 1,700 jobs because of the deteriorating economy.

Safeway, the third-largest grocery retailer, lost 6.7 per cent to $22.04. Wal-Martfell 3 per cent to $55.81 after the world's largest retailer said it is "temporarily" suspending a share repurchase programme because of "instability in credit markets" and the shrinking economy.

General Motors, the largest US automaker whose shares surged 21 per cent on Monday, fell 4.7 per cent to $4.70. Ford, the second-biggest automaker, declined 4.4 per cent to $3.23. The US government may end up holding stakes in GM, Ford and Chrysler if Congress and the White House reach agreement. Under the proposed rescue, the Treasury would get warrants for stock equivalent to 20 percent of any government loans. - (Bloomberg)