Techs lead slide as S&P 500 turns red for the year

  @ibtimes on January 22 2010 3:08 PM

U.S. stocks fell for a third-straight day on Friday, dragged lower by technology shares after Google Inc's revenue and chipmaker Advanced Micro Devices Inc's sales outlook disappointed investors.

Continued worries about earnings growth after the White House proposed to curb risk-taking by U.S. banks also weighed on financial stocks and the overall market.

For financials, that (proposal) is a big concern, said Janna Sampson, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.

JPMorgan Chase & Co fell 1 percent to $40.13 and the S&P financial sector <.GSPF> lost 0.9 percent.

Internet company Google's earnings beat Wall Street's forecast on Thursday, but revenue missed some estimates and its shares fell 2.6 percent to $567.67.

Advanced Micro Devices Inc also beat estimates, but the company warned sales in the first quarter of 2010 will be down. Its shares tumbled 9 percent to $8.18.

Companies like Google, IBM, Intel have all popped their bottom line number, but there's been a 'sell on the news' mentality, said Fred Dickson, market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.

Now, we have earnings surprises equal in magnitude to a quarter ago, but the estimates have already moved up substantially ahead of that.

The Dow Jones industrial average <.DJI> lost 46.17 points, or 0.44 percent, to 10,343.71. The Standard & Poor's 500 Index <.SPX> fell 5.99 points, or 0.54 percent, to 1,110.49. The Nasdaq Composite Index <.IXIC> dropped 15.86 points, or 0.70 percent, to 2,249.84.

The S&P 500 fell into the red for the year, joining the Dow and Nasdaq, which ended Thursday in negative territory for 2010. For the year to date, the Dow is off 0.6 percent, the S&P is down 0.2 percent and the Nasdaq has lost 0.7 percent.

Credit card company Capital One Financial Corp tumbled 8.7 percent to $38.99 a day after warning it faced tightening profit margins on loans it makes.

Capital One and American Express Co reported higher-than-forecast fourth-quarter earnings on Thursday but expressed concern about the growth outlook for credit cards.

AmEx shares dropped 5.3 percent to $39.91, making it the Dow industrials' top drag.

On the upside, General Electric Co shares advanced 3 percent to $16.50, while McDonald's Corp rose 1.6 percent to $64.19 and was the top Dow gainer after both companies reported earnings that topped expectations.

(Additional reporting by Leah Schnurr; Editing by Padraic Cassidy)

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