Stocks fell yesterday as more corporate earnings woes sparked a panicky morning sell-off that knocked the Nasdaq composite index to a low unseen since late 1998, though the market managed a late recovery.

Bad earnings news from data-storage giant EMC Corp and Brocade Communications Systems worried the Nasdaq early.

The Nasdaq fell 23.97 points, or 1.06 per cent, to end at 2,244.97, according to the latest data, while the Dow Jones Industrial average ticked up 0.23 of a point to 10,526.81. The benchmark Standard & Poor's 500 index shed 2.45 points, or 0.20 per cent, to 1,252.82.

"There is no theme right at the moment and there is lack of fundamental information coming from companies, so this market is fishing for something that is tangible and substantial," said Ned Riley, chief investment strategist, State Street Global Advisors in Boston.