Libyan unrest, HP earnings sink stocks

Stocks fell for a second straight day Wednesday after clashes in Libya sent oil prices to two-year highs and technology giant Hewlett-Packard said its revenue growth was slowing.

Forces loyal to Libyan leader Moammar Gadhafi continued to fight with anti-government demonstrators, leading to widespread chaos and shooting in the streets of the Libyan capital, Tripoli. Nearly 300 people have been killed, according to Manhattan-based Human Rights Watch.

Traders are worried the revolt could threaten Libya's oil production and spread to other countries in the region.

"We're at a point where the market is concerned over this series of dominoes in the Middle East and wonders if there's another country that's next to fall," said David Katz, a portfolio strategist for Weiser Capital Management.

The Dow Jones industrial average lost 107.01 points, or 0.9 percent, to 12,105.78. The Standard & Poor's 500 index fell 8.04, or 0.6 percent, to 1,307.40. The Nasdaq composite fell 33.43, or 1.2 percent, to 2,722.99.

Each major index has gained more than 10 percent over the past three months, leading some analysts to say the situation in Libya is giving traders an opportunity to sell and lock in profits after the market's recent run-up.

Oil companies benefited from the higher crude prices. Chevron Corp. was the biggest gainer in the Dow average, rising 1.9 percent. Exxon Mobil Corp. also gained 1.9 percent. Energy companies in the Standard & Poor's 500 index rose 2 percent, the only gain among its 10 company groups.

Meanwhile, technology stocks fell after Hewlett-Packard Co., a bellwether for the group, gave a disappointing revenue forecast for the current fiscal year. The stock fell 9.6 percent, the most out of the 30 that make up the Dow average.