THE REAL MOST ACTIVE Dow, S&P 500 Retake Early Losses.(MAKING MONEY)

Byline: CHRISTINA WISE

Dogged by war worries, NYSE stocks headed lower Monday morning but managed to recoup a good chunk of their losses as the day wore on. By the close, the Dow Jones industrial average had trimmed its loss to 0.4%. The S&P finished nearly even, shedding less than 0.1%.

Bausch & Lomb saw some of the exchange's heaviest downside action. The eye-care company tumbled 2.92 points, or nearly 7%, to 41.65. It's now 50% short of its May 1999 all-time high. The firm reclassified its 1998 to 2001 financial statements to reflect a new accounting rule relating to payments to resellers.

It also reaffirmed its 2002 guidance, which calls for revenue growth in the mid- to upper single digits and earnings of around $1.30 a share, plus another 35 cents for goodwill. First Call's consensus estimate is $1.63 a share.

Embattled Watson Pharmaceuticals logged its sixth straight loss, slipping 0.68 to 26.41 as volume nearly tripled. The stock has shed 60% of its value over the last year.

On Friday the drug company said the Food and Drug Administration had rejected its application to market a patch for overactive bladder therapy. On Monday Merrill Lynch cut Watson's rating to neutral from ...