Stocks fell modestly yesterday as weakness in technology stocks, spurred by a Dell Computer earnings warning, barely prevailed over gains in retail and healthcare issues. Dell, the No. 2 personal computer maker, warned that its fiscal fourth-quarter results would fall short of expectations. It fell 13 cents to $25.50, rising off an early low of $23.63.

Dragging the Dow lower was American Express which reported quarterly earning in line with expectations. However, it expected 2001 earnings per share growth to be at the low end of its 12 to 15 per cent target because of weak financial markets and a slowing economy.

"Consumers slowed down their spending on credit cards and that had to have an effect on American Express," said Moshe Orenbuch, an analyst at CS First Boston. American Express, fell $3.63 or 7.46 per cent, to $45, a drop that subtracted almost 24 points off the Dow.