What a Week: Loose Lips

Other chip names down in sympathy included SanDisk (SNDK Quote) and KLA-Tencor (KLAC Quote), while Silicon Image (SIMG Quote) tumbled 24% after issuing disappointing results and guidance.

The Philadelphia Semiconductor Sector Index slid 1.3% Friday and was down 0.7% on the week. The Semiconductor HOLDRs(SMH Quote) exchange-traded fund fell 1.25% Friday and 1.1% on the week.

As embodied by the chips, the tech sector was choppy this week, but the last word was a negative one. On Wednesday, traders celebrated the sector as Cisco Systems(CSCO Quote) reported strong earnings and provided better-than-expected guidance. Cisco ended the week up only 2.1% after being up more than 6% for the week intraday Thursday. Meanwhile, Microsoft (MSFT Quote) shed 4% this week, weighing on all major averages.

The Dow Jones Industrial Average finished down 0.5% Friday and 0.6% lower on the week, while the S&P 500 slid 0.7% Friday and 0.6% on the week.

After hitting a new record high last week, the Dow Jones Transportation Average fell 1.7% in the week, as worries about the economy and the housing market ballooned. The homebuilders slid after Toll Brothers(TOL Quote) announced a 19% drop in revenue and cancellation rates still up around 30%. Toll Brothers fell 3.1% Friday and 8.5% on the week. The Philadelphia Housing Sector Index fell 4.4% on the week.

Friday's roster of Fed speakers didn't mention any threats to economic growth. Rather they focused on inflation.