http://www.reuters.com/article/marketsNews/idINN0326057820071003?rpc=44
US STOCKS-Wall St hit by tech sell-off, job data fears Wed Oct 3, 2007 4:34pm EDT By Ellis Mnyandu NEW YORK, Oct 3 (Reuters) - U.S. stocks dropped on Wednesday after a broker's weak outlook for chip makers drove a sell-off of technology shares and as investors worried monthly jobs data could show deterioration in the labor market. Shares of technology companies had been top performers in recent weeks, but bellwethers such as Intel Corp (INTC.O: Quote<http://www.reuters.com/stocks/quote?symbol=INTC.O>, Profile <http://www.reuters.com/stocks/companyProfile?symbol=INTC.O>, Research <http://www.reuters.com/stocks/researchReports?symbol=INTC.O>) fell after Morgan Stanley said a price war in the chip sector is brewing. Investors also focused on Friday's release of September payrolls data, which may suggest the housing slump and credit market turmoil is seeping into the broader U.S. economy. "Investors have turned cautious, waiting for the employment number on Friday," said Frederic Dickson, senior vice president and market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. "In a perverse way, I think Wall Street is hoping for a slightly disappointing jobs report, but not a catastrophic one." Investors also consolidated profits for a second day, pulling down shares of plane maker Boeing Co. (BA.N: Quote<http://www.reuters.com/stocks/quote?symbol=BA.N>, Profile <http://www.reuters.com/stocks/companyProfile?symbol=BA.N>, Research<http://www.reuters.com/stocks/researchReports?symbol=BA.N>) and General Electric Co. (GE.N: Quote<http://www.reuters.com/stocks/quote?symbol=GE.N>, Profile <http://www.reuters.com/stocks/companyProfile?symbol=GE.N>, Research<http://www.reuters.com/stocks/researchReports?symbol=GE.N>), after these stocks helped drive the Dow industrials to yet another record above 14,000 on Monday. The Dow Jones industrial average (.DJI: Quote<http://www.reuters.com/stocks/quote?symbol=.DJI>, Profile <http://www.reuters.com/stocks/companyProfile?symbol=.DJI>, Research<http://www.reuters.com/stocks/researchReports?symbol=.DJI>) was down 79.26 points, or 0.56 percent, to end at 13,968.05. The Standard & Poor's 500 Index (.SPX: Quote<http://www.reuters.com/stocks/quote?symbol=.SPX>, Profile <http://www.reuters.com/stocks/companyProfile?symbol=.SPX>, Research<http://www.reuters.com/stocks/researchReports?symbol=.SPX>) was down 7.04 points, or 0.46 percent, at 1,539.59. The Nasdaq Composite Index (.IXIC: Quote <http://www.reuters.com/stocks/quote?symbol=.IXIC>, Profile <http://www.reuters.com/stocks/companyProfile?symbol=.IXIC>, Research <http://www.reuters.com/stocks/researchReports?symbol=.IXIC>) was down 17.68 points, or 0.64 percent, at 2,729.43. Intel was among the session's top drags after Morgan Stanley initiated coverage of the chip maker with an "underweight" rating and a price target of $22, saying it expects an inventory correction and aggressive price wars.
