(Updated from 5:31 p.m. ET)

Stocks fell across the board, bringing the major indices to their lowest levels since mid-April, as investors braced for a rough-and-tumble second-quarter earnings season.

In another low-volume session, the

Dow Jones Industrial Average fell 123.76 points, or 1.2%, to 10,175.64, while the

Nasdaq Composite shed 64 points, or 3.2%, to 1962.79. The

S&P 500 lost 17.26 points, or 1.4%, to 1181.52.

"Generally, there

was a lack of bids in the marketplace," said Sam Ginzburg, senior managing director of trading at

Gruntal

. "People are really worried about earnings."

A crushing business outlook from

Corning

(GLW) - Get Corning Inc Report

flattened technology stocks today. The fiber-optics company confirmed that results for the second quarter would top estimates, but it said numbers for the rest of the year would falter. "This market downturn could last 12 to 18 months," the company said in a statement.

Corning fell 98 cents, or 6.5%, to $14.12, and the

Nasdaq Telecommunications Index

shed 3.1%. In addition, Corning said it would

cut 1,000 jobs, close three plants, and record $5.1 billion in charges.

3M

(MMM) - Get 3M Company Report

and

IBM

(IBM) - Get International Business Machines (IBM) Report

-- two of the largest components on the Dow -- were the biggest drags on the blue-chip index. 3M, which warned about its second quarter earlier this month, fell $3.20 to $111.65. IBM lost $2.76 to $101.96.

"People were burned by the EMC

(EMC)

warning on Thursday and are concerned about IBM," said David Memmott, head of listed trading at

Morgan Stanley

.

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IBM hasn't offered any cautious comments about its quarterly results. But shortly after the closing bell today, one of its competitors did.

Compaq

(CPQ)

lowered its revenue forecast, citing price competition and a slowdown in the PC industry.

Also today, more retailers said they would

miss earnings targets.

Linens 'n Things

(LIN) - Get Linde plc (LIN) Report

and youth apparel chain

Gadzooks

(GADZ)

each forecast weaker-than-expected second-quarter and full-year earnings.

Oil stocks were down, with the

American Stock Exchange Oil & Gas Index

losing 1.1%, but

Triton Energy

(OIL) - Get iPath Series B S&P GSCI Crude Oil ETN Report

was a notable exception. Triton jumped 48.6% to $44.43 on news

Amerada Hess

(AHC) - Get A.H. Belo Corporation Class A Report

would acquire the company for $45 a share.

AT&T

(T) - Get AT&T Inc. Report

also moved higher again today. The company's board said it would consider

Comcast's

(CMCSK)

unsolicited bid for its cable unit, but the company said it wasn't likely to accept the current $41.4 billion offer. AT&T gained $1.94 to $20.64.

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