* Baidu, Netflix post large declines
* Alcoa shares up after results
* Dow off 0.8 pct, S&P 500 off 1 pct, Nasdaq down 1.5 pct
By Rodrigo Campos
NEW YORK, Oct 9 U.S. stocks fell on Tuesday, led
by losses in technology after brokerage downgrades of Intel and
other major companies as worries increased about third-quarter
Shares of Intel, the world's largest semiconductor
maker, lost 2.7 percent to $21.90 after negative reports by at
least two brokerages. Robert W. Baird & Co cut its price target
on the stock to $26 from $32, citing weak demand for notebooks.
The news triggered selling of large-cap technology shares,
including Oracle and Apple. Microsoft shares lost 1.7
percent to $29.28 and ranked as the biggest drag on both the
Nasdaq and the S&P 500.
"It's a good bet that companies aren't significantly
expanding their tech projects at this point," said Kim Forrest,
senior equity research analyst at Fort Pitt Capital Group in
Nine of the S&P 500's 10 sectors fell, with energy the one
gainer for the day as crude oil prices jumped on concerns of a
supply disruption in the Middle East.
Earnings warnings have left investors cautious after a rally
that has driven the S&P 500 up nearly 16 percent so far in 2012,
lifting it to an almost five-year high.
Among other large multinationals that have warned about
earnings, citing weak demand in Europe and China, are FedEx Corp
, Caterpillar Inc and Hewlett-Packard Co.
"Stocks had a big move for the year. Now people are waiting
for more clarity on third-quarter results and fourth-quarter
guidance," said Michael James, senior trader at Wedbush Morgan
in Los Angeles.
Analysts expect quarterly earnings for S&P 500 companies to
decline about 2.3 percent from the year-ago period, according to
Thomson Reuters data.
At the close, the S&P 500 was 7.9 percent below its all-time
closing high of 1,565.15, reached five years ago on this date.
The Dow Jones industrial average fell 110.12 points,
or 0.81 percent, to 13,473.53 at the close. The S&P 500
lost 14.40 points, or 0.99 percent, to 1,441.48. The Nasdaq
Composite dropped 47.33 points, or 1.52 percent, to
close at 3,065.02.
About 5.8 billion shares changed hands on the New York Stock
Exchange, the Nasdaq and NYSE MKT, below the daily average so
far this year of about 6.53 billion shares.
More than three issues fell for every one that rose in the
NYSE. On the Nasdaq, about seven stocks fell for every two that
Dow component Alcoa Inc reported quarterly results
after the bell and its stock rose to $9.20, adding to the slight
gain during regular hours. Alcoa closed at $9.13, up 0.1
percent, or 1 cent.
Shares of Netflix slid 10.9 percent to $65.53,
reversing Monday's sharp gains after Bank of America Merrill
Lynch cut the video streaming company's stock to "underperform"
Chinese Internet company Baidu was also downgraded
by Credit Suisse to "underperform" from "neutral." Its shares
shed 6.8 percent to $106.49.
A number of issues traded on U.S. stock exchanges
experienced sudden, big moves on Tuesday before resuming normal
trading in the latest case of erratic activity in the stock