NEW YORK, April 23 - U.S. stocks fell but bonds rose onMonday after downgrades of Intel Corp. and Oracle Corp. by Wall Streetfirms revived corporate profit worries despite interest-rate cuts by the FederalReserve. The yen jumped against the dollar and euro as self-styled reformer JunichiroKoizumi seemed likely to become Japan's next prime minister. In New York, oil prices edged up on worries about U.S. supplies ahead ofthe peak summer driving season. "The downgrades, the fact the economy is not strong and earnings willcontinue to disappoint in the tech area, soured sentiment," said Milton Ezrati,senior economic strategist at investment firm Lord Abbett & Co. "It broughtpeople back to reality after the enthusiasm provided by Fed Chairman (Alan)Greenspan." The U.S. Federal Reserve unleashed a surprise rate cut last week to halt theeconomic slowdown. That lit a fire under the market, which had scraped outnew two-year lows just three weeks ago on a barrage of companies warningof disappointing results. Investors pocketed profits from that rally, and the tech-laden NasdaqComposite Index sank 104.09 points, or 4.81 percent, to end at 2,059.32, asnearly two stocks fell for each one that rose. The Dow Jones industrial average fell 47.62 points, or 0.45 percent, to10,532.23, amid a mixed bag of earnings by four component companies. Itwas weighed down by computer giant International Business Machines Corp., off $2.83 at $112, and software titan Microsoft Corp. , down 75 cents at$68.25. The S&P 500 Index lost 18.62 points, or 1.50 percent, to end at 1,224.36.During the session, the index re-entered bear market territory -- a decline of20 percent or more from the peak -- before late buying helped whisk it out.The S&P 500 last week chalked up a two-week winning streak of 25.70percent -- the largest two-week gain in the broad market measure's history. Upbeat results came from oil giant Exxon Mobil and diversified manufacturerand fellow Dow member Minnesota Mining & Manufacturing Co. But phonecompany SBC Communications , and the financial services firm AmericanExpress Co. put in a lackluster performance, and their shares fell, pressuringthe Dow. Merrill Lynch slashed its investment rating on leading semiconductor stocks,including Intel, saying the recent rally in the chip sector was too much, toosoon. The Philadelphia Stock Exchange semiconductor index fell 5.78percent. Intel, Nasdaq's third most active stock, shed $2.11 to $30.32. Merrill, the No. 1 U.S. brokerage, also downgraded Applied Micro CircuitsCorp. , down $4.40 at $25.60, PMC-Sierra Inc. , down $6.05 at $38.76,and Vitesse Semiconductor Corp. , off $2.33 at $32.44. All dragged Nasdaqdown. Software giant Oracle Corp. fell 13.16 percent, or $2.60 to $17.15, afterLehman Brothers downgraded it, saying the present quarter could prove to beunusually weak. The S&P Computer software index dropped 4.79 percent,also reflecting losses by Oracle's rivals. Investors, disillusioned with the market slump, pulled a record $15.4 billionfrom U.S. stock funds in March, according to research firm Lipper Inc. It wasthe second month in a row investors yanked money out, something that hasn'thappened since Iraq's 1990 invasion of Kuwait. Corporate America's earnings picture is still bleak, particularly whencompared with recent years when robust economic growth lifted CorporateAmerica's bottom line. With the S&P 500 companies that have reported thusfar, earnings are down 4.7 percent year-over-year. In 2000, earnings gained23.6 percent, according to market tracker Thomson Financial/First Call. "We probably have another quarter or so of tough news, especially for thetech sector, which has overly optimistic growth rates," said John Davidson,chief investment officer for Circle Trust Co., which oversees $8 billion. Last week's market rally ignored "an increased risk of a significant downshiftin consumption that will cause earnings to remain sluggish for several morequarters," said Thomas McManus, equity market strategist for Banc ofAmerica Securities. McManus advised clients to buy fewer U.S. stocks. But investors should not fight the Fed, other pundits argued, addingdownward earnings revisions should stop soon. "Sometimes the negative earnings revisions outweigh what the Fed is trying todo," said Eugene March, portfolio manager at the $1 billion Armada EquityGrowth Fund. "We've had a number of bear traps before in this market, butwe are cautiously optimistic that we've made a bottom, because the Fed hasbeen aggressive in easing monetary policy." The most active Nasdaq issue was Cisco Systems Inc. the top Web gearmaker, which lost $1.82 to $17.33, or 9.5 percent, on what analysts calledprofit-taking and fears the tech sector will provide more bad news. Struggling telecom equipment maker Lucent Technologies Inc. , set to reportquarterly earnings on Tuesday, unnerved investors because the results areexpected to show a large loss, said Justin McNichols, portfolio manager withOsborne Partners Capital Management. Lucent, the most active issue on theNew York Stock Exchange, fell 31 cents to $9.20. At the 5 p.m. (2100 GMT) New York settlement, the two-year note rose6/32 to 100-6/32, yielding 4.14 percent. The benchmark 10-year note gained 27/32 to 98-18/32, yielding 5.18percent. The 30-year bond jumped 30/32, or almost a full point, to 94-30/32.In terms of dollars, the long bond gained $9.375 on each $1,000 of facevalue. Its yield, which moves in the opposite direction of its price, fell to 5.73percent from 5.80 percent on Friday. The yen rallied on optimism that Koizumi, who leads the race to head theruling Liberal Democratic Party, would shake up Japan's anemic economicinfrastructure and spur growth. The dollar fell to 121.25 yen in late U.S. trading, from 122.51 yen late Fridayin New York. The euro settled at 89.75 cents, down from 90.20 cents. On the New York Mercantile Exchange, crude oil futures for June deliveryrose 3 cents to $27.61 a barrel. Overseas, London's FTSE-100 Index fell 8.5 points or 0.14 percent to finishat 5,871.3. In Tokyo, the tech-sensitive Nikkei 225 average ended down50.07 points or 0.36 percent at 13,715.60.