1.   Analysts said the drop was tempered by expectations for a report tomorrow showing inflation is subdued.

2.   Gains in Boeing Corp. and International Business Machines Corp. tempered the drop.

3.   Gains in computer stocks tempered the drop.

4.   Gains in oil and airline stocks tempered the drop.

5.   Gains in Monsanto Co., International Paper Co. and other companies that do best in an expanding economy tempered the drop.

6.   Gains in oil shares tempered the drop.

7.   Japanese stocks traded mixed, as a rise in machinery issues such as Howa Machinery amid hopes for a speedy economic recovery tempered a drop in banking shares.

8.   MCI Communications Corp. tempered the drop after the long-distance provider and Microsoft said they will team up to market and develop services for the burgeoning on-line and Internet markets.

9.   Optimism that the economy is growing fast enough to spark higher corporate profits helped temper the drop.

10.   Selling by institutional investors helped to temper a drop in municipal yields caused by the earlier rally in Treasuries.