(Corrects to remove American Express from headline and first paragraph since stock was up; fixes second bullet point)
* Microsoft shares slide, tech sector sinks
* American Express results disappoints
* Black & Decker Q2 profit beats Street, shares soar
* Consumer sentiment slips in July
* For up-to-the-minute market news click [STXNEWS/US] (Updates to late morning)
By Rodrigo Campos
NEW YORK, July 24 (Reuters) - U.S. stocks fell on Friday as bellwether Microsoft (MSFT.O) declined on disappointing results, a day after a rally took the Dow industrials .DJI above the key 9,000 mark.
Shares extended losses after a gauge of consumer sentiment fell in July, roughly in line with expectations.
Microsoft Corp shares tumbled 9 percent to $23.30 following a steeper-than-expected 17 percent drop in quarterly revenue from the world’s top software maker. That marked a shift after recent shining results from other giants like Intel Corp (INTC.O) and Apple Inc (AAPL.O). (For story, see [ID:nN23430280]).
The S&P technology index .GSPT dropped 1.3 percent, weighing the most on the benchmark S&P 500.
American Express Co and fellow credit card issuer Capital One Financial Corp (COF.N) said rising customer delinquencies reduced second-quarter earnings. [ID:nN23419883]
Still, AmEx shares rose 10 cents to $29.55, even as the S&P financial sector index .GSPF fell 1 percent.
“The market wants to see progressively better reports and the last 24 hours have not generated them,” said Alan Gayle, director of asset allocation at RidgeWorth Investments in Richmond, Virginia.
“Microsoft earnings are a reminder that the economy is still soft”.
The Dow Jones industrial average .DJI dropped 29.48 points, or 0.33 percent, to 9,039.81. The Standard & Poor's 500 Index .SPX fell 5.47 points, or 0.56 percent, to 970.82. The Nasdaq Composite Index .IXIC lost 24.15 points, or 1.22 percent, to 1,949.45.
U.S. consumer confidence waned in late July to its lowest reading since April, as tracked by the Reuters/University of Michigan Surveys of Consumers. [ID:nN24449821]
Amazon.com Inc (AMZN.O) shares fell 8.4 percent to $86.02 a day after the Internet retailer reported revenues that missed analyst estimates. [ID:nN23417518].
Winding down a week loaded with quarterly reports, Schlumberger Ltd (SLB.N) posted a sharp drop in earnings and warned it did not expect a rebound in spending by its oil- and gas-producing customers this year. [ID:nN24444747]. Its shares fell 3 percent to $56.07.
On the upside, toolmaker Black & Decker Corp BDK.N reported second-quarter profit above estimates and raised its 2009 earnings outlook. Its shares jumped 10 percent to $37.11. [ID:nBNG405750]
U.S. Treasury Secretary Timothy Geithner said Friday he was willing to work with lawmakers on shaping an overhaul of financial regulations, but insisted major changes are necessary. [ID:nN24347905]. Geithner testified before the U.S. House Financial Services Committee.
Geithner, Federal Reserve Chairman Ben Bernanke and Federal Deposit Insurance Corp Chairman Sheila Bair are testifying before the U.S. House Financial Services Committee on regulatory reform.
The S&P 500 closed Thursday at its highest since the Election Day in November and the Nasdaq has risen for 12 straight days, its longest run since 1992. (Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)