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Stocks Tumble on Slowdown Fears

By Paul Shread   |    July 12, 2006
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Stocks resumed their downtrend on Wednesday, falling sharply on fears of an economic slowdown and rising tensions in the Mideast.

With earnings warnings from the likes of EMC , AMD , Lucent and 3M already weighing on the market, investors were reluctant to hold stocks before earnings season swings into high gear next week.

Intel , which will report its quarterly earnings July 19, led the Dow lower with a 4% loss.

Network Appliance and Apple were also big losers in the tech sector. NetApp fell 7% on accounting concerns, while Apple lost 5% on negative comments from Credit Suisse. Dell dropped 4% on a UBS downgrade.

Microsoft slumped 2% on an EU antitrust fine.

The Nasdaq tumbled 38 to 2090, the S&P 500 fell 14 to 1258, and the Dow lost 121 to 11,013. Volume declined to 2.25 billion shares on the NYSE, and 1.86 billion on the Nasdaq. Decliners led 22-10 on the NYSE, and 22-7 on the Nasdaq. Downside volume was 78% on the NYSE, and 79% on the Nasdaq. New highs-new lows were 64-119 on the NYSE, and 49-105 on the Nasdaq.

Infosys and Intergraph rose on their results.

Secure Computing plunged on a warning and acquisition. Tut Systems also fell on a warning.