U.S. Stocks Trim Slide But Still Lower For Fourth Day This Week

NEW YORK (MarketWatch) -- U.S. stocks on Friday remained lower for the fourth day this week, but trimmed earlier losses sparked by Wachovia Corp., which stirred more subprime concerns by hiking its loan loss estimates, and Qualcomm Inc.'s disappointing forecast.

"In general people may be getting more comfortable with the fact that maybe we're seeing the worst is behind us," said Owen Fitzpatrick, head of the U.S. equity group at Deutsche Bank.

"In order for market to move higher, tech has to move back into the leadership position, which I think it will," said Fitzpatrick.

Down more than 200 points earlier, the Dow Jones Industrial Average was last down 93 points to 13,173.3, with 20 of its 30 components in the red, led by IBM Corp. , off 5% and General Motors Corp. , down 4.2%.

The S&P 500 declined 4.86 points to 1,469.91.

Tech's Tumble

Especially hard hit, the Nasdaq Composite slumped 35.54 points, or 1.3%, to 2,660.46.

The technology-heavy index has declined 5.3% since the end of last week as the year's high-performing tech sector endured another down session.

Even high-flowing Google Inc. was not spared, with the Internet search engine off 2.8% at $673.25, down sharply from the intraday high of $747.24 hit just two days ago. .

Volume on the New York Stock Exchange topped 1.3 billion, and for every stock purchased on the exchange, two were sold. On the Nasdaq, 2.2 billion shares traded hands, and decliners edged out advancers more 9 to 5.

Deficit, sentiment down

Ahead of the opening bell, stock futures offered little reaction to an unexpected decline in the U.S. trade deficit in September, which the Commerce Department attributed to a surge in exports. .

The market also displayed little interest in a monthly gauge of consumer sentiment, which fell further in November, to 75.0 compared to 80.9 in October. The index released by Reuters and the University of Michigan is now at its lowest level in 13 months, and under expectations calling for 79.5.

The decline in consumer sentiment could well coincide with a grim holiday sales season for retailers, said retail consultant Britt Beemer. .

Active Issues

Wachovia , the nation's fourth-largest bank, said in a regulatory filing its expects loan losses of as much as $600 million in the fourth quarter. .

Wachovia's warning helped spark further selling of embattled financial stocks, but its stock, as well as others in the sector, rebounded late in Friday's session. Read .

Qualcomm , the second-biggest U.S. maker of chips for mobile phones, said legal woes and increased competition would cause 2008 results to fall under expectations. .

Shares of blue chip Merck & Co. climbed after the drug maker said it would settle most of its liability lawsuits tied to its Vioxx painkiller for about $4.85 billion.

Gold mine

In commodities trade on the New York Mercantile Exchange, oil futures swung between gains and losses amid concerns about supply and the U.S. economy. In recent action, crude for December delivery gained 70 cents to $96.16. .

Gold futures fell, recently down $2.90 at $834.60 after surging to a record-high close of $837.50 on Thursday. .

The dollar remained on a downward path, sliding about 1.75% against the Japanese yen as financial woes on Wall Street continued to take their toll on stocks, while a bleak consumer sentiment survey further sparked concerns about U.S. economic growth. .

Treasurys remained higher, with the ongoing credit worries plaguing stocks keeping safe-haven bids in play. The benchmark 10-year note was recently up 16/32 at 100 7/32, its yield down to 4.222%.

Asian markets were mixed in volatile trade, with shares in Tokyo falling as the yen's strength against the U.S. dollar hurt exporters. .

Equities trade was also volatile in Europe, where shares fell. .

By Kate Gibson