* Two stocks fall for every rising share on NYSE
* 22 S&P 500 companies due to report earnings Wednesday
* Dow off 0.6 pct, S&P down 0.4 pct, Nasdaq off 0.4 pct
By Caroline Valetkevitch
NEW YORK, April 18 U.S. stocks slipped on
Wednesday, a day after Wall Street's best gains in a month, as
uninspiring earnings from tech bellwethers IBM and Intel
gave investors a reason to take profits.
Chesapeake Energy Corp dropped 5.5 percent to $18.06
and was the most actively traded stock on the New York Stock
Exchange after a Reuters report that CEO Aubrey K. McClendon did
not disclose loans of as much as $1.1 billion over the last
three years against his stake in thousands of the company's oil
and natural gas wells.
The stock fell as low as $17.17, its lowest since July 2009.
International Business Machines Corp and Intel Corp were
among the biggest drags on the Dow. IBM missed its revenue
forecast, while investors said Intel's results failed to make a
"bull case" for the stock. IBM shares slipped 3.5 percent to
$200.13 while Intel shares fell 1.8 percent to $27.95. The PHLX
semiconductor index dropped 0.9 percent.
The lackluster reports from the two technology heavyweights
came at the start of what has so far been a strong earnings
On Tuesday, the S&P 500 had its best day in a month as
Coca-Cola Co led the day's round of solid earnings and
concerns eased over the euro zone's debt crisis.
"Both Intel and IBM have led to some profit-taking today,
with both companies posting decent reports, but disappointing
investors for different reasons," said Michael Sheldon, chief
market strategist at RDM Financial in Westport, Connecticut.
"If you want to be an optimist, you could point to the fact
that the market didn't sell off all that much, given the solid
advance we saw yesterday."
The Dow Jones industrial average dropped 82.79
points, or 0.63 percent, to 13,032.75 at the close. The Standard
& Poor's 500 Index shed 5.64 points, or 0.41 percent, to
1,385.14. The Nasdaq Composite Index slipped 11.37
points, or 0.37 percent, to 3,031.45.
Bruce Bittles, chief investment strategist of Robert W.
Baird & Co in Nashville, Tennessee, expects the market to
continue its back-and-forth moves, possibly trending lower in
the second quarter after strong gains earlier in the year.
"A consolidation or correction phase in the second quarter
would make the most sense, and probably it would be the most
healthy thing for the market," he said.
Among other declining shares, Berkshire Hathaway Inc's Class
B shares dropped 1.3 percent to $79.74 a day after CEO
Warren Buffett said he has cancer. On Tuesday,
Buffett said that he has Stage 1 prostate cancer that "is not
remotely life-threatening or even debilitating in any meaningful
A bright spot in the tech space, Yahoo Inc shares
gained 3.2 percent to $15.49, a day after reporting that
quarterly revenues rose - marking Yahoo's first quarterly sales
growth in three years, as the new CEO outlined plans to revamp
the struggling Internet media company.
Eighty percent of S&P 500 companies are beating earnings
estimates so far, with results in from 66 companies.
Other advancers included Halliburton Co, up 4.6
percent at $34.17, after the world's No. 2 oilfield services
company said North American revenue reached a record high.
In contrast, shares of Genworth Financial Inc slid
23.8 percent to $5.87 after the life and mortgage insurer pushed
back the initial public offering of an Australian unit.