Tech Shares Take a Hit

Updated from 4:07 p.m. EDT

Deficiency in a heretofore obscure revenue line item in Microsoft's(MSFT Quote) earnings kept the pressure on stocks Friday.

The Dow Jones Industrial Average fell almost 31 points, or 0.3%, to 9582.46, while the Nasdaq shed about 20 points, or 1.1%, to 1865.59. The S&P 500 lost 5 points, or 0.5%, to 1028.91.

Treasuries were sharply higher, with the 10-year up 22/32 and its yield at 4.23%.

"This decline is to be expected, after the terrific run-up we've had in equity prices year to date," said John Davidson, president of PartnerRe Asset Management. "Embedded in prices is a lot of good news this quarter, but until we get further confirmation of recovery in the economy, the markets will trade in a range, signaling the full valuation of stocks."

The major averages closed lower for the week, with the Dow down 1.4%, the S&P lower by 1% and the Nasdaq losing 2.4%.

About 1.4 billion shares traded hands at the New York Stock Exchange, while 1.9 billion shares were exchanged at the Nasdaq. Decliners were outpacing advancers by a 3-to-2 margin on both exchanges.

More than 300 companies in the S&P 500 have reported results so far. Earnings have risen 19.4% on average, the fastest pace since the second quarter of 2000, according to Thomson First Call.