Stock Market News U.S: Wall Street drops as U.S. technology driven sales is in darkness

U.S. stocks fell on Tuesday, led by losses in technology after a brokerage downgrade Intel and other large companies because of concerns about the U.S. earnings in the third quarter.

Shares of Intel, the largest manufacturer of semiconductors in the world, lost 2.7 percent to $ 21.91 after reporting negative, at least two brokerages. Robert W. Baird & Co lowered its price target for Intel, citing weak demand for laptops.

News evoked feelings that sell all the shares of large cap technology, including Apple, which is under pressure in recent weeks.

Michael James, trader at Wedbush Morgan in Los Angeles, made Apple the poor in recent weeks, the main reasons for the decline in technology stocks.

"Because Apple makes 20 percent of Nasdaq, has a hand in technology stocks in general. Low semiconductor and Intel stock performance made people cautious, "said James.
Apple shares, which reduces most of its early losses and only fell 0.2 percent to $ 637.10 in trading midday.
Microsoft shares fell 1.6 percent to $ 29.31 and is regarded as the greatest obstacle to the Nasdaq.
Parties Netflix slid 9.3 percent to $ 66.63 after Bank of America Merrill Lynch cut shares streaming video "underperform" from "buy."

The PHLX semiconductor index fell 1.5 percent.

Chinese Internet company Baidu has also been downgraded Credit Suisse to "underperform" from "neutral." Its shares shed 7 percent, to $ 106.29.

Analysts expect earnings reports for S & P 500 companies to register a decline of about 2.4 percent compared to the same period last year, according to Thomson Reuters. This means that the first quarterly decline in three years for the S & P 500 corporate profits.

Warnings on earnings left investors cautious after the meeting that took the S & P 500 up nearly 16 percent so far in 2012, rising to nearly five years higher.

"The stock has been a big step for the entire year. Now people expect more clarity on the third quarter results and guidance for the fourth quarter," said James, adding that the volume of transactions increased light Monday the volatility of the stock ahead of the earnings season.

Dow Jones Industrial Average fell 84.95 points, or 0.63 percent, to 13,498.70. Standard & Poor's 500 Index fell 10.37 points, or 0.71 percent, to 1,445.51. The Nasdaq fell 37.41 points, or 1.20 percent to 3074.94.
Earnings season begins, when Dow component Alcoa Inc. reported quarterly results after the closing bell Tuesday. The analysts expect Alcoa's third quarter results show the aluminum company has reached equilibrium, against a profit of 15 cents per share, a year earlier, according to Thomson Reuters.

"Everyone is waiting to see what Alcoa said after the bell," said John Petrides, portfolio manager of Advisors Capital Management in Hasbrouck Heights, New Jersey.
"Alcoa does a very good job of describing the overall growth: They are in all major markets significant, and they give a good reading of what is happening in the global economy," he added.
Parts Alcoa rose 1.1 percent to $ 9.22.

Other major multinational corporations, who warned revenue, citing weak demand in Europe and China, are FedEx Corp., Caterpillar Inc. and Hewlett-Packard Co from FedEx paid 0.7 percent to 85.73 $, while from Caterpillar fell 0.8 percent to $ 84.76. HP shares fell 0.9 percent to $ 14.33.