* RIM's board re-elected at annual meeting; stock falls
* Applied Materials adjusts outlook; shares slide
* Spanish, Italian bond yields drop; focus on German court
* Dow up 0.1 pct, S&P off 0.2 pct, Nasdaq down 0.4 pct
By Angela Moon
NEW YORK, July 10 U.S. stocks mostly fell on
Tuesday as several profit warnings from t he U.S. technology
sector raised concerns about a slowdown in the economy.
Trade was choppy as it has been recently in some of the
lightest volume sessions this year, as the S&P 500 followed up
its best three-day run since December with three straight
declines after the holiday break in the middle of last week for
Independence Day. The S&P 500 is on track for its fourth daily
loss in a row.
"The market is slowly adopting to the reality that we are
going into a global recession. Today is the perfect example of
that. Materials, energy and technology sectors are all down
while defensive sectors are up," said James Dailey, portfolio
manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.
"The weak earnings," he added, and the "pre-announcements
are really starting to hit the market."
U.S.-listed shares of Research In Motion Ltd
fell 5.2 percent to $7.28. The BlackBerry
maker's shareholders elected the company's slate of directors at
its annual meeting - the first presided over by new CEO Thorsten
Heins, who faces an uphill battle to get the embattled company
back on track.
Advanced Micro Devices tumbled 10.5 percent to $5.03
after the chipmaker slashed its outlook for second-quarter
revenue following disappointing sales in China and Europe.
Applied Materials Inc lost 1.3 percent to $10.87
after the chip-gear 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 1.6 percent.
Bank stocks, highly sensitive to developments in the euro
zone, erased their earlier gains to trade nearly flat. JPMorgan
Chase & Co shares rose just 0.2 percent to $34.03 after
rising as high as $34.45 earlier. But the KBW Bank index
dipped 0.1 percent after rising more than 1 percent.
The Dow Jones industrial average rose 10.94 points,
or 0.09 percent, to 12,747.23. The Standard & Poor's 500 Index
dipped 2.38 points, or 0.18 percent, to 1,350.08. The
Nasdaq Composite Index slipped 11.35 points, or 0.39
percent, to 2,920.42.
Alcoa Inc, a Dow component, kicked off the quarterly
earnings season late Monday with revenue and profit that beat
Wall Street's expectations even though prices for its aluminum
are at nearly two-year lows. Alcoa also forecast growing demand
in the aerospace and auto sectors. But the aluminum giant's
shares lost 3.5 percent to $8.45.
In Europe, investors were in hopes that the German
Constitutional Court will quickly approve Europe's new bailout
plan and budget rules after German Finance Minister Wolfgang
Schaeuble warned the court that any significant delay could
Spanish bond yields fell below the 7 percent level, which
has forced other countries to seek a bailout, on hopes the plan
will be approved. Italian bond yields slipped
below 6 percent.