Updated from 4:01 p.m. EDT

Technology stocks led a broader market selloff Friday after a report showing consumers are less optimistic than previously believed dissipated enthusiasm over the pace of economic expansion.

The

Dow Jones Industrial Average closed down 124 points, or 1.2%, to 9911. The

Nasdaq lost 50 points, or 2.9%, to 1664 and the

S&P 500 was lower by 15 points, or 1.4%, at 1078.

Two key pieces of economic data released this morning set the day's tone. The University of Michigan's final consumer sentiment index for April fell more than expected to 93.0 from 95.7 in March, short of the consensus estimate of 94.5.

And the Commerce Department said

gross domestic product rose at a 5.8% clip in the first quarter as businesses slowed their pace of inventory reduction and consumer spending remained brisk. The surprisingly strong initial estimate follows a 1.7% expansion in the fourth quarter and is the latest evidence that the recession that began in early 2001 has ended.

Entertainment conglomerate

Walt Disney

(DIS) - Get Report

said second-quarter profits fell from last year due to weak advertising at its ABC broadcasting unit and low attendance at theme parks, but the company's results still topped analysts' expectations. The Burbank, Calif., company posted a net profit of $259 million, or 13 cents a share, reversing a loss of $449 million, or 22 cents a share, in the year-ago period. Analysts were expecting a profit of 10 cents a share. Revenue fell to $5.90 billion from $6.05 billion last year. Disney shares were heavily traded, falling 3.6% to $24.10

General Mills

(GIS) - Get Report

, the nation's largest breakfast cereal producer, lowered guidance for its fourth quarter and fiscal 2003 as difficulties integrating newly acquired Pillsbury have contributed to lower sales volumes. The company now sees sales volumes about 4% lower than year-ago levels, as compared to its previous forecast of low single-digit growth. Shares traded lower by 5.2% at $43

Energy trader

Dynegy

(DYN)

closed down 22.4% to $14.90 after a couple of major brokerages trimmed their investment ratings on the stock. The downgrades come on the heels of news that the SEC is investigating the merits of one of its natural gas supply deals.

Separately, biotech giant

Amgen

(AMGN) - Get Report

said first-quarter earnings rose due to increased sales and lower taxes. The company posted a net profit of $340.9 million, or 32 cents a share, compared with $304.9 million, or 20 cents a share, a year ago. Shares ended the session down 2.8% to $53.84

Overture Services

(OVER)

rose 32.8% to $33.75 after posting solid earnings and announcing a three-year extension of its partnership with

Yahoo!

(YHOO)

.

VeriSign

(VRSN) - Get Report

, a maker of computer security software, fell 45.9% to $9.89 a day after the company missed analysts' revenue targets and set plans to cut 10% of its workforce.

Elsewhere, generic drugmaker

Andrx

(ADRX)

said first-quarter earnings fell due to increased marketing expenditures and legal issues that delayed the launch of new treatments. The company posted a net profit of $8.4 million, or 12 cents a share, compared with $19.2 million, or 27 cents a share, in the year-ago quarter. Its shares were adding 3.3% at $44.24 in recent trading.

U.S. Treasury issues were slightly higher following the GDP report with the 10-year note up 9/32 to 98 19/32, yield 5.06%.

Overseas markets were mixed with London's FTSE 100 recently down 0.7% to 5159 and Germany's Xetra DAX off 1.3% to 4989. Japan's Nikkei 225 finished down 0.9% at 11,541, while the Hang Seng dropped 0.2% to 11,385.