Microsoft, Amazon Add To Slowdown Fears

Weaker than expected earnings from Microsoft and Amazon added to fears of an economic slowdown on Friday, sending the Nasdaq to fresh lows for the year.

Amazon plunged 13% after missing earnings and revenue estimates. Microsoft’s numbers were pretty solid, with higher than expected revenues, but investors sent the stock 3% lower after the company missed earnings estimates by a penny, as interest income declined as the company prepares for a huge cash distribution.

Following a string of disappointing results from the likes of Intel , Yahoo and eBay , investors saw little reason to hold stocks.

The Nasdaq tumbled 39 to 1949, the S&P 500 lost 10 to 1086, and the Dow fell 88 to 9962. Volume declined to 1.34 billion shares on the NYSE, and 1.7 billion on the Nasdaq. Decliners led 21-10 on the NYSE, and 22-8 on the Nasdaq. Downside volume was 78% on the NYSE, and 86% on the Nasdaq. New highs-new lows were 15-68 on the NYSE, and 15-197 on the Nasdaq.

Broadcom beat estimates, but fell 6% on inventory concerns. Gateway beat earnings estimates and announced a deal with Best Buy , but lost 4% on lower than expected revenues.

DoubleClick plunged 27% after missing estimates and warning.

Tekelec and Overstock were two of the day’s standouts, rising on better than expected results and guidance.

But webMethods , VeriSign , Digital Insight , Foundry , Micromuse , CA , TriQuint and Hutchinson fell on their earnings reports.