Profits double at Yahoo Inc, and the stock drops 8 percent in one day.
Earnings increase by 95 percent at Intel Corp. and the stock plunges 11 percent.
Wall Street is so tough to satisfy these days that even good news turns out to be bad for investors.
The rap on Yahoo and Intel was that doubling profits was old news. Now both are showing signs of slowing growth. In the trading mentality that dominates the market, that means it's time to sell the stocks even if both are likely to dominate their businesses for years to come.
Because Intel and Yahoo are industry leaders, their slumping stocks are dragging other Internet and computer stocks, depressing the Nasdaq Stock Market composite index. Today the Nasdaq composite fell for the third day in a row and the seventh time in the nine trading sessions this month.
The end of the second quarter marked an abrupt turning point for Nasdaq, which with today's 17-point loss fell to 1,914.88, down 133 points, or 6.5 percent, since June 30. The Nasdaq composite has fallen for three days in a row and for seven of the nine trading sessions so far this month.
Other measures of the market aren't slumping so steadily but continued to drift down today.
The Dow Jones industrial average fell 39 points to 10,208.8.
The Standard & Poor's 500 stock index fell 4 points to 1,111.47.
In today's trading Yahoo continued to crawl back from last week's sell-off -- up 58 cents over the past four days to $30.66. Analysts are predicting Intel too will gradually rebound from today's $2.76 drop to $23.38, which was the stocks worst one-day loss in more than a year and a half.
Whatever happens to Intel's stock, the apparent slowdown in the chip maker's growth may be a symptom of an ailment affecting the entire economy.
Today's retail sales report from the Commerce Department confirmed the trend shown by last week's June sales reports from the major retail chains, which had a mediocre month.
The government figures showed a 1.1 percent decline in retail spending in June, the most dramatic drop since February of last year. High priced gasoline is draining away money that consumers could spend elsewhere and cutting sales of gas-guzzling sport utility vehicles. Car dealer sales fell 4.3 percent in June, despite stepped up incentives, and now are running at the slowest annual rate since 1998.
The flow of second quarter reports is starting to pick up and is expected to drive the market for the next two weeks.