US STOCKS-Wall St falls as techs warn on profits
* Applied Materials adjusts outlook; shares slide
* Advanced Micro falls as chipmaker cuts outlook for revenue
* RIM's board re-elected at annual meeting; stock falls
* Dow off 0.7 pct, S&P off 0.8 pct, Nasdaq down 0.9 pct
By Angela Moon
NEW YORK, July 10 (Reuters) - U.S. stocks fell on Tuesday as several profit warnings from the technology sector added to concerns the economy was losing steam.
Trading was choppy and volume was thin in keeping with the recent pattern. The S&P 500, which had its best three-day run of the year about a week ago, has fallen for the past three sessions on worries about the slowing economy.
"The market is slowly adopting to the reality that we are going into a global recession," said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.
He noted that stocks of materials, energy and technology companies were down while defensive sectors were up.
Disappointing earnings reports and company outlooks that warned of lower profits and revenues were hitting the market, Daily said.
Advanced Micro Devices tumbled 10.9 percent to $5.01 after the chipmaker slashed its outlook for second-quarter revenue following disappointing sales in China and Europe.
Applied Materials Inc lost 2.5 percent to $10.75 after the chip-equipment maker said it expects to miss its full-year estimates and its third-quarter results will be at the low end of its previous outlook. The PHLX semiconductor index fell 2 percent.
U.S.-listed shares of Research In Motion Ltd fell 3.9 percent to $7.36. The BlackBerry maker's shareholders elected the company's slate of directors at its annual meeting - the first presided over by new Chief Executive Thorsten Heins, who faces an uphill battle to get the embattled company back on track.
The Dow Jones industrial average was down 87.41 points, or 0.69 percent, at 12,648.88. The Standard & Poor's 500 Index was down 10.67 points, or 0.79 percent, at 1,341.79. The Nasdaq Composite Index was down 26.49 points, or 0.90 percent, at 2,905.28.
Bank stocks, highly sensitive to developments in the euro zone, erased earlier gains to trade flat. JPMorgan Chase & Co shares rose 0.2 percent to $34.03 after rising as high as $34.45 earlier. The KBW Bank index dipped 0.3 percent after rising more than 1 percent.
If the S&P 500 were to go below support levels, the market could see further declines, an analyst said.
"First trading support is at 1,340-1,345, coinciding with a five-week uptrend and with the 50-day moving average," said Robert Sluymer, analyst at RBC Capital Markets in New York.
"Next important support is at the late June lows at 1,309, just above the 200-day moving average. A break below that would leave the S&P vulnerable to a decline to the early June lows at 1,266."
Alcoa Inc, a Dow component, kicked off the quarterly earnings season late Monday with revenue and profit that beat Wall Street's expectations. Alcoa shares, which rose in after-hours trading on Monday, were off 3.5 percent to $8.45 on Tuesday.
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