Updated from 4:05 p.m. EDT

Tech stocks led another market retreat Wednesday after Apple's ( AAPL) fourth quarter disappointed investors and chip stalwart Intel ( INTC) got socked with a downgrade.

The Dow Jones Industrial Average lost 36.26 points, or 0.35%, to 10,216.91. The S&P 500 fell 7.19 points, or 0.61%, to 1177.68. The Nasdaq Composite slid 23.62 points, or 1.15%, to 2037.47. The Dow ended at its lowest level since May 13.

About 1.90 billion shares traded on the New York Stock Exchange. Trading volume on the Nasdaq was 2.04 billion shares. Decliners outpaced advancers 3 to 1.

The 10-year Treasury was down 14/32 in price to yield 4.45%, while the dollar fell against the yen and euro.

"Until the market becomes extremely oversold or shows some sign of life, the risks are still all on the downside," said Ken Tower, chief market strategist with CyberTrader. "Of course, if the market is to become extremely oversold, it will have to decline from here. There just isn't much out there for the bulls."

Red numbers were widespread -- retailers, oil stocks, homebuilders, financials, transports, computer hardware makers and the chip sector all finished in negative territory. The drug sector was modestly higher.

Despite a quadrupling of net income, Apple shares dropped 4.5% as the company's revenue line and iPod unit sales fell short of Wall Street forecasts. The computer company earned $430 million, or 50 cents a share, in the quarter. Excluding items, Apple earned 38 cents a share, beating the consensus by a penny. Sales rose 57% from a year ago to $3.69 billion, and iPod shipments totaled 6.45 million units, but analysts expected more on both fronts.

Apple also announced a new video iPod as well as a new version of the company's iMac computer at a conference. Apple and Walt Disney ( DIS) reached an agreement to offer ABC and Disney television shows for download. The stock lost $2.34 to close at $49.25.

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