The Dow Falls 85 Points, Nasdaq Drops 39

May 24, 2007 5:11 PM EDT

The Dow fell 84.52 points to close at 13,444.13, the Nasdaq dropped 39.13 points to close at 2,588.02, and the S&P 500 lost 14.77 points to close at 1,507.51. Stocks closed lower in a see-saw day, first moving higher on strong new home sales data, then sliding after investors feared an interest rate cut would not be needed. Some Wall Street brokers may not have wanted to be 'Long' the market going into the holiday weekend. Oil fell $1.44 a barrel to close at $64.33.

Volume was modest with 3.46 billion shares trading on the NYSE and 2.42 billion trading on the Nasdaq. Advancers topped Decliners by a margin of 18:15 on the NYSE and 19:11 on the Nasdaq.

In individual stories, Brown Shoe Company (NYSE: BWS) gained 17.3% higher after reporting Q1 adjusted EPS of $0.29 (non-adjusted EPS was $0.23) vs. $0.18. Revenues were $566.3 million vs. $573.49 million consensus. For fiscal 2007, the Company continues to estimate sales will range from $2.48 billion to $2.52 billion and now expects net earnings per diluted share of $1.55 to $1.59, versus previous guidance of $1.52 to $1.55. On an adjusted basis, net earnings per diluted share are now estimated to be $1.86 to $1.90, versus previous guidance of $1.83 to $1.87. (Consensus is $2.5 billion and $1.54, respectively). Network Appliance (Nasdaq: NTAP) fell 16.5% after reporting Q4 EPS of $0.30, in-line with estimates. Revenues came in at $801.2 million versus the consensus of $798.5 million. Sees Q1 revs down 6%-7% sequentially versus the consensus of $814.35 million. Sees Q1 EPS of $0.24-$0.25, versus the consensus of $0.31.

Tomorrow investors will be looking for earnings from Dollar General Corp. (NYSE: DG) and Vimpel-Communications (NYSE: VIP).

Also, investors will be looking for economic data from existing home sales.

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