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Saturday July 19, 3:02 AM Stocks slip after Google, Microsoft disappoint Photo: Reuters Click to enlarge NEW YORK (Reuters) - Stocks fell on Friday, after disappointing results from Google Inc and Microsoft Corp Citigroup, the largest U.S. bank, helped financial stocks rally for a third straight session, limiting the Dow's loss. Internet search company Google had its biggest one-day percentage drop since it went public in 2004 and Microsoft fell the most in two years, after the tech bellwethers' quarterly results fell short of expectations. "It's a very split market today, right along the financials and technology lines. Financials are actually moving higher, based on OK numbers from Citigroup, but you had some big disappointing numbers from tech, which is worrying," said Paul Nolte, director of investments at Hinsdale Associates, in Hinsdale Illinois. The Dow Jones industrial average fell 6.51 points, or 0.06 percent, to 11,440.15. The Standard & Poor's 500 Index was down 6.11 points, or 0.48 percent, at 1,254.21. The Nasdaq Composite Index was down 37.61 points, or 1.63 percent, at 2,274.69. A wider-than-expected loss by chipmaker Advanced Micro Devices , whose shares fell 12.3 percent to $4.65 on the New York Stock Exchange, added to concerns about the outlook for the U.S. technology sector. Shares of Google slid 10 percent to $480.34 on Nasdaq. Microsoft shares shed 6.8 percent to $25.65, also in Nasdaq trading, after the software maker gave a forecast below Wall Street's expectations. Dow component International Business Machines Corp bucked the glum technology earnings trend, also boosting the Dow. IBM's shares rose 2.4 percent to $129.55 on the NYSE. The Dow gained nearly 500 points Wednesday and Thursday as stronger-than-expected earnings from Wells Fargo and JPMorgan Chase & Co eased some fears about the health of the U.S. banking system, on the heels of a government takeover a week ago of California-based mortgage lender IndyMac. But regional banks, many of which report earnings next week, were among the top sector drags on the S&P 500, suggesting investor worry that the credit crisis has not run its course for the smaller banks. The S&P Regional Banks Index fell 2.3 percent, led by BB&T Corp . Citigroup jumped 7.7 percent to $19.36 after the Dow component reported a smaller-than-expected $2.5 billion loss and said it would keep cutting costs and getting rid of risky or poorly performing assets. Earlier, Citigroup's stock climbed more than 10 percent to hit an intraday high at $20.47. The positive news from Citi was a sharp contrast to disappointing news of a larger-than-expected quarterly loss from Merrill Lynch , whose stock fell 3 percent to $29.77. With earnings season now in full flow, analysts expect second-quarter S&P 500 earnings to drop 17.1 percent. If second-quarter earnings end up being lower, it will be the fourth consecutive quarter of negative growth for the S&P 500, the longest losing streak in six years, according to Thomson Reuters proprietary research. Oil prices fell for a fourth day on Friday, helping to cushion the market's decline. High fuel costs have been adding to concerns about consumer spending and corporate profits. U.S. crude oil for August delivery fell 41 cents to $128.88 a barrel. (Reporting by Kristina Cooke; Editing by Jan Paschal)