U.S. TECH STOCKS FELL ON THURSDAY, WITH THE NASDAQ DROPPING NEARLY 2 PERCENT, AS A DISAPPOINTING FORECAST BY INTEL CORP. AND A WEAKER-THAN-EXPECTED REGIONAL BUSINESS ACTIVITY REPORT WEIGHED ON THE MARKET, ACCORDING TO REUTERS. SHARES OF INTEL, THE WORLD'S LARGEST CHIP MAKER, FELL 7.5 PERCENT TO $17.10, A DAY AFTER IT REPORTED THE SALES FORECAST AND LOWER QUARTERLY PROFIT. THE PHILADELPHIA FEDERAL RESERVE BANK SAID ITS BUSINESS ACTIVITY INDEX FOR THE MID-ATLANTIC REGION FELL TO ITS LOWEST LEVEL SINCE JANUARY AS COSTS CLIMBED. MINUTES OF THE FEDERAL RESERVE'S LAST MEETING HAD LIMITED IMPACT ON THE STOCK MARKET, ANALYSTS SAID. THE MINUTES SHOWED POLICY MAKERS SAW "SIGNIFICANT UNCERTAINTY" ABOUT THE FUTURE PATH OF INTEREST RATES. "STOCKS LOST SOME MOMENTUM AFTER A COUPLE OF LACKLUSTER EARNINGS REPORTS AND THE WEAK PHILLY FED," SAID STEVE NEIMETH, PORTFOLIO MANAGER AT AIG SUNAMERICA ASSET MANAGEMENT IN JERSEY CITY, NEW JERSEY. THE DOW JONES INDUSTRIAL AVERAGE FELL 83.32 POINTS, OR 0.76 PERCENT, TO 10,928.10. THE STANDARD & POOR'S 500 INDEX SLID 10.68 POINTS, OR 0.85 PERCENT, TO 1,249.14. THE NASDAQ COMPOSITE INDEX DROPPED 41.29 POINTS, OR 1.98 PERCENT, TO 2,039.42. INTEL SHARES WERE THE BIGGEST DRAG ON THE NASDAQ AND THE S&P 500. UBS AND AG EDWARDS BOTH CUT THEIR PRICE TARGETS ON THE STOCK. SHARES OF HEAVY EQUIPMENT MAKER CATERPILLAR INC. LED THE DOW'S DECLINE. THE STOCK DROPPED 2.9 PERCENT, OR $2.04, TO $69.08 ON THE NEW YORK STOCK EXCHANGE AFTER PEABODY ENERGY CORP., THE WORLD'S LARGEST PRIVATE-SECTOR COAL PRODUCER, FORECAST A THIRD-QUARTER EARNINGS SHORTFALL. CATERPILLAR'S CUSTOMERS INCLUDE MAJOR COMPANIES IN THE MINING AND ENERGY SECTORS. ANALYSTS AT CITIGROUP ON THURSDAY DOWNGRADED THE CAPITAL GOODS GROUP TO "UNDERWEIGHT" FROM "MARKET WEIGHT". PEABODY SHARES SLID 10.4 PERCENT, OR $5.56, TO $47.79. YUM BRANDS INC.'S SHARES FELL 6.4 PERCENT, OR $3.13, TO $46.00. THE COMPANY REPORTED EARNINGS LATE WEDNESDAY, WHICH SHOWED DISAPPOINTING U.S. SAME-STORE SALES GROWTH. BUT SHARES OF APPLE COMPUTER INC. JUMPED 11.8 PERCENT, OR $6.40, TO $60.50 ON THE NASDAQ, A DAY AFTER THE MAKER OF THE IPOD DIGITAL MUSIC PLAYER SAID QUARTERLY PROFIT TOPPED WALL STREET'S EXPECTATIONS. APPLE SHARES REGISTERED THEIR BIGGEST ONE-DAY PERCENTAGE GAIN IN NEARLY TWO YEARS. ANALYSTS SAID INVESTORS WERE WORRIED ABOUT MAKING BETS ON STOCKS FOLLOWING STRONG GAINS ON WEDNESDAY WHEN FEDERAL RESERVE CHAIRMAN BEN BERNANKE'S COMMENTS RAISED HOPES FOR A PAUSE IN INTEREST-RATE RISES. "I WOULDN'T BE SURPRISED TO SEE A LITTLE BIT OF SOFTENING IN THE EQUITY MARKET," SAID MICHAEL SHELDON, CHIEF MARKET STRATEGIST AT SPENCER CLARKE IN NEW YORK. IN A SECOND DAY OF TESTIMONY ON CENTRAL BANK POLICY, BERNANKE TOLD HOUSE MEMBERS ON THURSDAY HE EXPECTED INFLATION TO MODERATE AND SAID A WAGE INCREASE WOULD NOT IMPEDE THAT. TRADING WAS HEAVY ON THE NEW YORK STOCK EXCHANGE, WHERE ABOUT 1.69 BILLION SHARES CHANGED HANDS, ABOVE LAST YEAR'S DAILY AVERAGE OF 1.61 BILLION. ON NASDAQ, ABOUT 2.08 BILLION SHARES TRADED, ABOVE LAST YEAR'S DAILY AVERAGE OF 1.80 BILLION. ON THE NYSE, DECLINING SHARES OUTNUMBERED ADVANCING ONES BY A RATIO OF MORE THAN 2 TO 1, WHILE ON NASDAQ, ABOUT THREE STOCKS FELL FOR EVERY ONE THAT ROSE.
