Dow Jones: 12,213.09 (–1.29) SP 500: 1,320.02 (–1.80) Nasdaq: 2,751.72 (–14.05):US STOCKS fell yesterday, sending the Standard and Poor's 500 Index lower for a third time in four days as violence in Libya tempered optimism that the biggest equity rally since 1955 will extend into a third year.

Caterpillar and DuPont fell at least 1 per cent, pacing losses in industrial shares.

Texas Instruments slumped 3.1 per cent as the largest analog chipmaker narrowed its profit estimate.

Finisar tumbled 39 per cent, leading other network-equipment makers lower, as its profit forecast missed analyst estimates.

International Business Machines rose 2.2 per cent as Deutsche Bank lifted its share-price estimate for the largest computer-services provider.

Oil fell 0.6 per cent to settle at $104.38 a barrel as a surge in supplies at a US hub overshadowed concern about violence in Libya.

“You’d be crazy not to be concerned about geopolitical risks,” said Philip Dow, director of equity strategy at Minneapolis-based RBC Wealth Management.

“Oil touches everything. However, if you’ve paid attention to every near-term uncertainty of the last two years, you would have missed the big move in stocks,” Mr Dow added. “You can’t see the forest for the trees. There’s not enough evidence that this could derail the global recovery. This is an expansion.”

The SP 500 has fallen 1.7 per cent from this year’s highest level on February 18th as oil surged amid unrest in Libya and the Middle East. The benchmark for US equities has rallied 95 per cent from its bear-market low exactly two years ago amid government stimulus measures and as corporate earnings beat analysts’ estimates for eight straight quarters.

Libya’s Ras Lanuf refinery, the country’s largest crude-processing plant, was shut during fighting between government forces and rebels, an official with the Libyan Emirates Oil Refining said.

Oil tanks at the nearby Es Sider terminal were damaged by bombings yesterday, according to Al Jazeera television. While some use “these issues to paint a gloomy picture, we remain optimistic and believe this ‘wall of worry’ will help elongate the bull run,” said Kully Samra, who manages UK- based clients for Charles Schwab Corp. – (Bloomberg)