IBD'S TOP 10.(A)

Stocks Sink For 4th Straight Day 1 The Nasdaq fell 2.1%, cutting its gain at the end of the first quarter to less than 1%. Chip and Internet stocks paced the decline. The Dow dropped 1.9% and the S&P 500 1.8%. Volume increased, marking the first clear distribution day. The S&P SmallCap 600 slid 1%. Treasuries rallied on news of a sharp slowdown in Chicago-area factories in March. More on this page, B2

Closest Fighting Yet To Baghdad 2The U.S. continued to pound Baghdad as officials reported a significant weakening of Iraq's capability. At the same time, U.S. forces battled in Hindiyah, the closest fighting to Baghdad so far. British forces continued to work to gain complete control of Basra in the south. American troops in Najaf were forced to kill civilians in a van that wouldn't halt. More on this page

American Air Avoids Bankruptcy

3The world's No. 1 carrier reached wage-cut agreements with its pilot, mechanic and flight attendant unions. The AMR unit was seeking $1.8 bil in labor concessions needed for American Air to avoid a Chapter 11 filing. US Airways emerged from bankruptcy Monday. It expects to save $1.9 bil a year through '08 via labor and benefit cuts.

Midwest, N.Y. Factories Weaken

4 The Chicago purchasers' March index fell to 48.6 from Feb.'s 54.9 on the run-up to war. That's the first reading below the break-even 50 mark since Oct. Production dived from strong growth to a small decline. Meanwhile, New York-area factory activity fell to its lowest level in over two years. Economists expect Tuesday's ISM index to drop below 50. See Vital Signs on A2

Feb. Chip Sales Up, Outlook Iffy