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From Briefing.com: 4:25 pm : A broad-based selling effort weighed on stocks for the entire session and sent buyers recoiling as more than 90% of the companies in the S&P 500 finished lower, which resulted in the S&P 500's third consecutive loss.

A negative bias loomed in premarket trading as sellers prepared to continue their efforts amid weakness among major foreign indices. Their cause was strengthened by an unexpected decline in advance retail sales data for April, which was released ahead of the opening bell and supported the notion that consumers aren't completely ready to lead an economic turnaround.

According to the data, April total retail sales decreased 0.4%, and sales less autos decreased 0.5%. The April figures failed to meet the consensus forecast, which called for total sales to be flat and sales excluding autos to increase 0.2%. However, the decline wasn't as sharp as what was seen in March, when total sales slid 1.3%, and sales less autos declined 1.2%.

Shares of retailers slid 3.3%. Retail giant Wal-Mart (WMT 50.03, -0.59) also finished with a loss, but outperformed the broader market on a relative basis. The company is scheduled to announce its latest quarterly results tomorrow morning, ahead of the opening bell.

Financials dropped 5.2%, more than any other major sector, and extended their week-to-date decline to more than 13%. While financials logged the worst loss of any sector this session, sellers weren't entirely focused on financial stocks. Cyclical plays also saw outsized losses as materials stocks (-4.5%) and industrials stocks (-4.0%) sank. Small-cap and mid-cap stocks were also strongly out of favor as the Russell 2000 Small-Cap Index sank -4.7% and the S&P 400 Mid-Cap Index made a 4.4% drop.

Large-cap tech had showed relative weakness in the early going, but managed to firm up a bit. Intel (INTC 15.13, -0.08) was a relative leader among its peers after stating that the second quarter is going better than the company had expected. That overshadowed news that Intel has been hit by the European Commission with a $1.45 billion fine for breaking antitrust laws. The fine represents nearly 14% of Intel's cash and short-term investments.

IBM (IBM 102.26, -1.68) attempted to drum up support by stating that earnings for fiscal 2009 will be least $9.20 per share, which is above the current consensus estimate of $9.11 per share.

Energy stocks finished 3.0% lower amid the broader market's downward bias and a downturn in crude oil prices. Crude oil contracts finished 1.4% lower at $58.02 per barrel after surrendering solid gains that were bolstered by bullish inventory data midmorning. Enthusiasm was partly capped by a lowered demand forecast from OPEC.

All 10 major sectors finished the session lower amid relatively high trading volume (approx. 1.8 billion shares on NYSE). Even health care, which had spent most of the session as the only sector in positive territory, buckled in late trading. Health care closed 0.1% lower, though pharmaceuticals were able to finish 0.7% higher.

The latest business inventory data had no real impact on this session's trading. Nonetheless, March data showed a 1.0% decrease in inventories, which was largely in-line with expectations. Tomorrow's economic data carries a bit more weight and will be in closer focus; both the April Producer Price Index and weekly initial jobless claims data are due at 8:30 AM ET Thursday morning.DJ30 -184.22 NASDAQ -51.73 NQ100 -2.7% R2K -4.7% SP400 -4.4% SP500 -24.43 NASDAQ Adv/Vol/Dec 395/2.15 bln/2294 NYSE Adv/Vol/Dec 337/1.77 bln/2745

4:31PM Univ Elec Chairman and Chief Executive Officer Adopts a 10b5-1 Trading Plan (UEIC) 19.94 -1.26 : Co announces that announced Paul Arling, chairman and CEO, has established a new trading plan in accordance with Rule 10b5-1. Under the plan, Arling intends to exercise up to 100,000 employee stock options, which were granted in October 1999 and are set to expire in October of 2009, and to immediately sell the underlying shares of UEI common stock beginning immediately and continuing from time to time until the expiration date of the options, subject to the market price of the company's common stock, all as set forth in his trading plan.

8:39AM Advanced Micro comments on European Commission ruling that Intel violated EU law and harmed consumers; says ruling is an important step toward establishing a 'truly competitive market' (AMD) 4.38 : "Today's ruling is an important step toward establishing a truly competitive market. AMD has consistently been a technology innovation leader and we are looking forward to the move from a world in which Intel ruled, to one which is ruled by customers. After an exhaustive investigation, the EU came to one conclusion - Intel broke the law and consumers were hurt. With this ruling, the industry will benefit from an end to Intel's monopoly-inflated pricing and European consumers will enjoy greater choice, value and innovation."

8:09AM On The Wires : Clearwire (CLWR) and Cisco (CSCO) announce an alliance designed to enhance and expand CLEAR 4G mobile WiMAX services throughout the United States. Under terms of the agreement, Clearwire has selected Cisco as its national Internet Protocol Next-Generation Network core infrastructure provider, and Cisco has announced plans to build new mobile WiMAX devices for the CLEAR 4G mobile WiMAX service...Valence Technology (VLNC) announces that it has been named as a supplier of battery systems to Oxygen SpA of Padua, Italy...

8:02AM Seagate Tech has initiated a restructuring plan that includes a reduction of ~2.5% of the company's global workforce (STX) 7.34 : The co announces it has initiated a restructuring plan that includes a reduction of approximately 1,100 employees or 2.5% of the company's global workforce. This reduction is required to support a targeted run rate of product development and marketing and administrative costs of less than $300 million per quarter and to position the company to be cash flow and earnings positive within its fiscal year 2010. The restructuring plan, which the company expects to be largely complete by the end of July 2009, is expected to result in total pretax restructuring charges of approximately $72 million. These charges will primarily be incurred in the June 2009 quarter and consist mainly of cash based employee termination costs which are expected to be substantially paid in the September 2009 quarter. The annual savings generated from this restructuring action is expected to be approximately $125 million.

6:30AM Intel says co takes strong exception to European Commission decision on Intel's business practices (INTC) 15.21 : The co issued the following statement regarding the European Commission decision on Intel's business practices: "Intel takes strong exception to this decision. We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace - characterized by constant innovation, improved product performance and lower prices. There has been absolutely zero harm to consumers. Intel will appeal. We do not believe our practices violated European law. The natural result of a competitive market with only two major suppliers is that when one company wins sales, the other does not. The Directorate General for Competition of the Commission ignored or refused to obtain significant evidence that contradicts the assertions in this decision. We believe this evidence shows that when companies perform well the market rewards them, when they don't perform the market acts accordingly. Intel never sells products below cost. We have however, consistently invested in innovation, in manufacturing and in developing leadership technology. The result is that we can discount our products to compete in a highly competitive marketplace, passing along to consumers everywhere the efficiencies of being the world's leading volume manufacturer of microprocessors."

09:39 am Intel (INTC)

The European Commission fined Intel (INTC 15.30, +0.09) 1.06 billion euros ($1.45 billion) Wednesday for breaking European antitrust laws.

The Commission found that Intel engaged in illegal anticompetitive practices to exclude competitors, primarily Advanced Micro Devices (AMD 4.48, +0.13), from the market for computer chips. Specifically, the Commission found that Intel engaged in two forms of illegal practice.

First, Intel gave wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, their x86 CPUs from Intel. Intel also made direct payments to a major retailer on condition it stock only computers with Intel x86 CPUs.

Second, Intel made direct payments to computer manufacturers to halt or delay the launch of specific products containing competitors' x86 CPUs and to limit the sales channels available to these products.

Intel said it "takes strong exception" to the ruling and will appeal. Intel said, "The natural result of a competitive market with only two major suppliers is that when one company wins sales, the other does not."

For its part, AMD said "Today's ruling is an important step toward establishing a truly competitive market."

Separately, shares of INTC are moving higher after the company's CEO told an investor conference last night that chip orders have been better than expected so far in the second quarter.

09:00 am Verizon Communications (VZ)

Frontier Communications (FTR 7.57) strengthened its position among rural phone providers today with the announcement that it will acquire approximately 4.8 million access lines from Verizon (VZ 30.40) in an all-stock transaction valued at approximately $8.6 billion.

Under the terms of the agreement, Verizon will establish a separate newly formed entity (SpinCo) for its local exchanges and related business assets in 14 states. SpinCo will be spun off to Verizon's shareholders and simultaneously merged with and into Frontier. Frontier will also assume about $3.3 billion in debt as part of the deal.

Depending on the trading prices of Frontier shares prior to the closing, Verizon shareholders will own between 66% and 71% of the new company.

Frontier CEO Maggie Wilderotter said, "This is a truly transformational transaction for Frontier. With more than 7 million access lines in 27 states, we will be the largest pure rural communications provider of voice, broadband and video services in the U.S."

The deal allows Verizon to focus its growth profile on wireless, broadband and global IP, the company said.

08:05 am Applied Materials (AMAT)

Applied Materials (AMAT 11.48) reported a fiscal second quarter loss that matched the expectations of analysts as weak demand cut revenues in half from the prior year.

Applied Materials reported a loss of $0.10 per share for its fiscal second quarter, matching the First Call consensus. The company reported a non-GAAP net loss of $136 million for the quarter, compared to earnings of $362 million in the same period last year.

Revenues fell 52.5% year-over-year to $1.02 billion, topping the $906.1 million consensus.

The Santa Clara, Calif.-based company reported a $3.16 billion backlog at the end of the second quarter, down from $4.05 billion at the end of the first quarter.

"In a period of exceptionally weak demand, Applied preserved its strong balance sheet, returned a dividend to our stockholders and made substantial investments in our future," said CEO Mike Splinter.

On its conference call, Applied Materials said it sees fiscal third quarter revenues to be flat to down 15%, which equates to approximately $867 million to $1.02 billion; the consensus currently stands at $931.15 million. In addition, the company said it expects to post a fiscal third quarter loss ranging from $0.06 to $0.14 per share; the consensus expects a loss of $0.07 per share.

At Tuesday's closing price shares of AMAT are up 13.3% year-to-date but are under pressure in premarket trading, down 4.6% about 90 minutes ahead of the opening bell.