Thursday, January 20, 2011

Dow, S&P dip as F5 view hits Nasdaq, Google up late

Stocks fell as lackluster tech and materials earnings failed to live up to heightened expectations, threatening to short-circuit a seven-week run.

The Dow Jones industrial average dipped 2.49 points, or 0.02 percent, to 11,822.80. The Standard & Poor's 500 Index fell 1.66 points, or 0.13 percent, to 1,280.26. The Nasdaq Composite Index lost 21.07 points, or 0.77 percent, to 2,704.29.

European shares fell, with miners among the casualties, as investors worried that China will have to undertake further monetary tightening to combat inflation after strong growth numbers.

The pan-European FTSEurofirst 300 index of top shares fell 1.1 percent 1,139.63 points, its lowest close since Jan. 10, after falling 1.3 percent on Wednesday.

Japan's Nikkei average fell as weaker-than-expected earnings by key US technology and banking firms, strong Chinese growth data and a weaker dollar prompted investors to lock in profits.

The benchmark Nikkei ended down 1.1 percent or 119.79 points at 10,437.31.

The broader Topix index shed 1 percent to 927.19.