* Worries about global economy weigh on stocks
* Techs fall on worries about global tech spending
* Fed's Beige Book: activity slows, some price relief
* Dow off 0.5 pct, S&P 500 off 0.8 pct, Nasdaq off 0.8 pct
(Updates to afternoon, changes byline)
By Kristina Cooke
NEW YORK, Sept 3 (Reuters) - U.S. stocks slipped in choppy
trade on Wednesday as signs of increasingly sluggish growth in
the world economy left investors worried about the outlook for
consumer spending and corporate profits.
Tech bellwethers such as Intel Corp <INTC.O> and
International Business Machines Corp <IBM.N> shares fell on
fears that a global economic slump could crimp tech spending
worldwide. Also weighing on the sector, chip makers' shares
fell after Qualcomm's <QCOM.O> chief executive warned that
customers are becoming slower to upgrade their cell phones.
A continued decline in the price of oil, which briefly
dipped below $108 a barrel <CLc1>, failed to spark optimism,
with investors instead calling it a symptom of slowing global
demand.
Adding to the unease, the Federal Reserve said in its Beige
Book report that economic activity has been slow across most of
the United States in recent weeks, but there has been some
relief from high commodity and energy prices.
"There are global economic concerns, global concerns about
financials, and that has spilled right over into the U.S.
markets," said Fred Dickson, market strategist, director of
retail research at D.A. Davidson & Co. in Lake Oswego, Oregon.
"The market is also digesting the Fed's Beige Book, which
showed soft economic conditions. All things considered, stocks
seem to be holding up quite well today."
The Dow Jones industrial average <.DJI> fell 35.17 points,
or 0.31 percent, to 11,481.75, while the Standard & Poor's 500
Index <.SPX> dropped 7.56 points, or 0.59 percent, to 1,270.02.
The Nasdaq Composite Index <.IXIC> was down 16.16 points, or
0.69 percent, at 2,333.08.
European data showed that falling investment and private
consumption led to the first-ever quarterly contraction in the
euro zone economy, fueling fears of a recession in the region.
A weakening global economy would compound the outlook for
corporate America since demand from abroad has served as a
lifeline for the U.S. economy as it grapples with the housing
slump.
A stronger dollar was another headwind for multinational
companies, as it makes U.S.-manufactured products less
competitive abroad.
Intel shares fell 4 percent to $21.68, making the stock a
top drag on the S&P 500. Shares of IBM dropped 2.7 percent to
$115.21.
Qualcomm <QCOM.O> weighed on Nasdaq, falling 3.1 percent to
$49.57 after its chief executive told CNBC the maker of chips
for wireless technology was seeing some signs that cell phone
replacements are slowing. That sparked a sell-off among
chipmakers and cell phone makers as investors worried about
holiday phone demand For details, see [ID:nN03290364]
An index of semi-conductor stocks <.SOXX> fell 3.8 percent.
Shares of Corning <GLW.N>, the world's largest maker of
glass for liquid crystal display televisions and computers,
slid 10.2 percent to $17.51 after the company slashed its
third-quarter profit outlook.
The closing of hedge fund manager Ospraie Management LLC's
flagship commodities-focused fund added to the market's unease.
It was also more bad news for Lehman Brother Holdings Inc
<LEH.N>, which took a 20 percent stake in the hedge fund
manager in 2005.
A report in South Korea's Daily Chosun Ilbo newspaper that
top European bank HSBC Holdings <HSBA.L><0005.HK> is among
among potential buyers of Lehman, the fourth-ranked U.S.
investment bank, helped limit the stock's losses. Lehman shares
were down 0.5 percent at $16.05.
Apart from the Beige Book, a separate economic report
showed new orders at U.S. factories jumped more than expected
in July, helped by a rise in transportation orders.
[ID:nN03516635]
(Editing by Leslie Adler)
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Keywords: MARKETS STOCKS