Weak Google results hit tech stocks, drag Wall St down

New York, Oct. 19, sotck tips .-  U.S. stocks fell on Thursday, with technology stocks hit hard after Google's surprisingly weak earnings – released prematurely during the trading day – disappointed investors. Shares of Google lost 8 percent – the stock’s worst day since January 20 – to close at $695 after the Internet giant’s third-quarter results showed earnings and revenue fell short of forecasts. The earnings report had not been expected until after the market’s close. Trading of the stock was halted at 12:50 p.m. after Google had fallen as much as 10.5 percent to a session low of $676. Trading resumed at 3:20 p.m.

After the midday snafu and the stock’s slide, Google was the biggest drag on the S&P 500. Tech stocks suffered, with the S&P 500 information technology index .GSPT losing 1.53 percent. Shares of IBM (IBM.N), which disappointed investors a day earlier, lost 2.8 percent to close at $194.96 and pull the Dow lower. “It’s a huge impact on the market, and especially the tech stocks,” said Paul Nolte, managing director at Dearborn Partners in Chicago. “What happened to Google is a continuation in the tech sector of some very poor earnings numbers. But we’re not seeing the same lack of performance across the board from other sectors.”

The Dow Jones industrial average .DJI dipped 8.06 points, or 0.06 percent, to close at 13,548.94. The Standard & Poor’s 500 Index .SPX shed 3.57 points, or 0.24 percent, to 1,457.34. The Nasdaq Composite Index .IXIC fell 31.26 points, or 1.01 percent, to end at 3,072.87. The day’s declines snapped the S&P 500′s three-day string of gains, which had pushed the benchmark index up 2.3 percent through Wednesday’s close. The Dow’s loss was limited by Travelers and Verizon.

Travelers (TRV.N) gained 3.6 percent to $73.94 and gave the biggest boost to the Dow after the U.S. property and casualty insurance company posted record operating earnings Verizon Communications Inc (VZ.N) rose 2.4 percent to $45.78 after the company reported a record quarterly profit. Verizon attributed these gains to its wireless business. It also posted revenue that slightly exceeded expectations. ... Continue to read.