The Dow Jones industrial average slid more than 100 points as mounting scepticism about continued profit growth overshadowed some encouraging inflation news.

The Dow, which started the day with a 55-point gain, fell 119.10 points to 7,938.88 after recovering from a 161-point plunge. The barometer of 30 big companies has not been below 8,000 since October 1st.

Sears Roebuck and Merck led the slide, falling the equivalent of 40 Dow points after the release of their latest earnings reports.

Broader stock measures also turned sharply lower despite a strong bond market, where interest rates fell after yesterday's report that retail inflation remained subdued in September despite another sharp increase in energy costs.

Declining issues outnumbered advancers by a 12to-7 margin on the New York Stock Exchange, with 1,072 up, 1,827 down and 526 unchanged.