U.S. stocks fall on Dell profit warning
New York: U.S. stocks dropped on Friday, on a profit warning from personal computer maker Dell Inc. With this, Nasdaq completed a third week of losses.

The markets remained anxious about the slowing down of the US economy and the ongoing Israel-Lebanon conflict that had the potential to affect oil prices.

Some investors turned to defensive-play stocks such as health-care companies.

Dell shares fell to their lowest in nearly five years after the company warned of a fall in second-quarter earnings and revenues. Shares of Dell fell by nearly 10 percent to $19.91 on Nasdaq, while shares of rival Hewlett-Packard Co. shed 4 percent to $30.52 on the New York Stock Exchange.

The Dow Jones industrial average dropped 59.72 points, or 0.55 percent, to end at 10,868.38. The Standard & Poor's 500 Index slid 8.84 points, or 0.71 percent, to finish at 1,240.29. The Nasdaq Composite Index sank 19.03 points, or 0.93 percent, to close at 2,020.39. For the week, the Nasdaq lost 0.8 percent.

However, the other two major U.S. stock indexes finished higher, with the Dow gaining 1.2 percent and the S&P 500 advancing 0.3 percent.

Microsoft raised its full-year outlook on strong demand for Windows and said it planned a $40 billion share buyback. Shares of Microsoft gained 4.5 percent, or $1.02, to $23.87 on Nasdaq. The stock was the biggest advancer in the Dow and the S&P 500, as well on the Nasdaq.

Health-care group Johnson & Johnson's stock rose 0.6 percent, or 36 cents, to $61.73 on the NYSE and was the Dow's fourth-biggest gainer.

Stocks of Boeing Co fell 2 percent, or $1.61, to $79.08, while Honeywell Inc's fell 1.1 percent, or 41 cents, to $36.21. UBS and Credit Suisse cut their price targets on Honeywell shares.

Volumes were heavy on the New York Stock Exchange, with about 1.92 billion shares changing hands, above last year's daily average of 1.61 billion. On Nasdaq, about 2.40 billion shares were traded, above last year's daily average of 1.80 billion. On the NYSE, decliners outnumbered advancers by a ratio of about 2 to 1. On Nasdaq, about three shares fell for every stock that rose.
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Bellsouth acquisition of AT&T approved
New York: Shareholders of BellSouth Corp. and AT&T Inc. voted to approve AT&T's plan to buy BellSouth later this year, the companies said. BellSouth said around 97 percent of those who voted approved the merger. That represented 1.22 billion, or more than 67 percent, of its outstanding shares. AT&T said the deal was approved by 98 percent of votes cast by its shareholders.

AT&T agreed in March to buy BellSouth for $67 billion and said it expects to complete the acquisition by autumn this year. The deal is still subject to regulatory review by the Department of Justice and the Federal Communications Commission.

The merger comes amid a debate over privacy concerns involving telephone companies.
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