Around the World's Markets: NEW YORK

US STOCKS lost some of yesterday's record gains, trading down 93.97 points, or 1.2 per cent, at 7,926.81 in midday trading. A number of leading companies, including Procter & Gamble and Merrill Lynch, warned that earnings would be below expectations.

Procter & Gamble shares fell $5 after warning of earnings growth in single digits in the fiscal first quarter. Merrill Lynch admitted to a $135m bond trading loss.