* Blackberry slumps after results
* Molycorp climbs after SEC investigation
* Accenture tumbles after earnings, outlook
* Indexes off: Dow 0.79 pct, S&P 0.62 pct, Nasdaq 0.43 pct
By Chuck Mikolajczak
NEW YORK, June 28 U.S. stocks opened lower on
Friday, as weakness in technology shares outweighed gains in
other shares spurred by relief a premature pullback of central
bank stimulus measures was unlikely.
The S&P 500 had risen 2.6 percent over the prior
three sessions as economic data and comments from U.S. Federal
Reserve officials soothed worries over an earlier-than-expected
reining in of stimulative bond purchases by the Fed.
The benchmark S&P index had lost as much as 4.8 percent in
the days following a June 19 statement from the U.S. Federal
Reserve, when Chairman Ben Bernanke said the Fed could start
slowing its bond purchases later this year if growth was strong
Technology shares weighed on the market early on Friday.
The S&P technology index fell 1.2 percent as the worst
performing S&P sector.
Accenture PLC tumbled 13 percent to $69.76 as the
biggest drag on the S&P 500 after the outsourcing and consulting
services provider cut its full-year outlook and reported
third-quarter revenue below analysts' estimates.
The results also put a dent in shares of competitor IBM
, which dropped 3.3 percent to $189.17 as the biggest
weight on the Dow.
"Clearly, (Accenture's) outlook is weak and certainly the
underperformance of technology as a sector in the stock market
shows there are cyclical issues going on in tech as well as
secular issues, rapid change occurring and purchasing managers
holding back," said Tim Ghriskey chief investment officer of
Solaris Group in Bedford Hills, New York.
U.S.-listed shares of Research in Motion plunged 27
percent to $10.57 after the BlackBerry maker offered few signs
of a long-promised turnaround on Friday. It reported an
unexpected quarterly operating loss, a dearth of details on
sales of its make-or-break new line of devices and no return to
profit expected in the current quarter.
The Thomson Reuters/University of Michigan's final reading
on the overall index on consumer sentiment was 84.1 points,
slightly below a near six-year high of 84.5 in May. Economists
polled by Reuters had forecast a final June reading of 82.8.
The S&P 500 index is currently up 2.1 percent for the
quarter and 12.4 percent for the year, its best first-half
performance since 1998, though it is on track for its first
monthly loss since October.
The Dow Jones industrial average dropped 119.23
points, or 0.79 percent, to 14,905.26. The Standard & Poor's 500
Index lost 10.03 points, or 0.62 percent, to 1,603.17.
The Nasdaq Composite Index fell 14.54 points, or 0.43
percent, to 3,387.32.
Investors can expect a surge of volume at the close Friday
when Russell Investments is due to set the final update for the
annual reconstitution of its indexes.
Molycorp Inc jumped 6.8 percent to $5.99 after the
rare earths producer said the U.S. Securities and Exchange
Commission completed an investigation into the company and
didn't recommend enforcement action.
Arch Coal Inc gained 2.2 percent to $3.68 after the
company agreed to sell its Canyon Fuel subsidiary for $435
million in cash.