By Ryan Vlastelica
NEW YORK (Reuters) - Stocks fell on Friday, pressured after a weak report on consumer sentiment outweighed some positive quarterly results and outlooks.
A Reuters/University of Michigan survey showed the final reading for its August index of consumer sentiment slid to a four-month low on worries about high unemployment and personal finances.
The news came as the three major U.S. stock indexes have soared about 50 percent from multi-year lows reached in early March, prompting speculation that the stock market had gotten ahead of itself.
"The market is starting to ask for proof the run-up is warranted," said Keith Springer, president of Capital Financial Advisory Services in Sacramento, California. "Without consumer spending, we can't have a meaningful recovery, and investors are starting to get weary of consumer spending not coming back."
While the data pushed the markets into negative territory after early gains, the Nasdaq's loss was limited by Intel
Also lifting tech stocks were Dell Inc
Dell shares gained 2 percent to $15.96, while Marvell was up 4.1 percent at $15.23.
Tiffany & Co
"The fact that Tiffany and Dell -- which represent tech and luxury spending -- failed to ignite the market shows that traders are cautious, given the run the market has had," said Jim Awad, managing director at Zephyr Management in New York.
"The fact that you can't make much progress with the two companies shows that the market has done what it's going to do," he added.
The Dow Jones industrial average <.DJI> dropped 67.72 points, or 0.71 percent, to 9,512.91. The Standard & Poor's 500 Index <.SPX> shed 6.30 points, or 0.61 percent, to 1,024.68. The Nasdaq Composite Index <.IXIC> slipped 7.61 points, or 0.38 percent, to 2,020.12.
Bennett Gaeger, managing director at Stifel Nicolaus in Baltimore, credited the strength in tech for curbing the Nasdaq's decline.
"Absolutely, Intel's outlook signals good things for the sector ahead," he said, adding that investors were also excited by Dell saying it saw seasonal order trends.
"Marvell said the same thing, which is good for the holiday season and consumers," he said.
An index of semiconductor stocks <.SOXX> gained 1.6 percent.
In other data released on Friday, a report from the Commerce Department showed consumer spending edged up 0.2 percent in July, largely driven by the government's "cash-for-clunkers" program, while personal incomes were flat in June.
The stock market turned negative after the release of the consumer sentiment data. Previously, the S&P had risen to 1,039.47, its highest intraday reading since October 14, 2008.
(Editing by Jan Paschal)
