RTTNews - Stocks continue to see notable weakness in late morning trading on Friday, with the major averages stuck firmly in negative territory. The pullback comes as traders cash in on recent gains in reaction to some disappointing earnings news.

After helping to lead the recent rally, technology stocks are turning in some of the worst performances after software giant Microsoft (MSFT) reported fourth quarter revenues that fell by more than analysts had been anticipating.

Within the technology sector, semiconductor stocks are posting particularly steep losses, dragging the Philadelphia Semiconductor Index down 3 percent. The index is pulling back off the nearly ten-month closing high it set on Thursday.

Weakness has also emerged in most of the other major sectors, with banking, railroad, retail, and housing stocks posting notable losses. On the other hand, some airline stocks are bucking the downtrend by the broader markets.

The major averages have regained some ground in recent trading, although they currently remain stuck in the red. The Dow is currently down 28.50 at 9,040.79, the Nasdaq is down 24.53 at 1,949.07 and the S&P 500 is down 6.20 at 970.09.

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