CORRECTED - US STOCKS-Wall St falls on Microsoft results

                                
 (Corrects to remove American Express from headline and first
paragraph since stock was up; fixes second bullet point)
                                
* Microsoft shares slide, tech sector sinks
                                
 * American Express results disappoints
                                
 * Black & Decker Q2 profit beats Street, shares soar
                                
 * Consumer sentiment slips in July
                                
 * For up-to-the-minute market news click [STXNEWS/US]
  (Updates to late morning)
                                
 By Rodrigo Campos
                                
 NEW YORK, July 24 (Reuters) - U.S. stocks fell on Friday as
bellwether Microsoft <MSFT.O> declined on disappointing
results, a day after a rally took the Dow industrials <.DJI>
above the key 9,000 mark.
                                
 Shares extended losses after a gauge of consumer sentiment
fell in July, roughly in line with expectations.
                                
 Microsoft Corp shares tumbled 9 percent to $23.30 following
a steeper-than-expected 17 percent drop in quarterly revenue
from the world's top software maker. That marked a shift after
recent shining results from other giants like Intel Corp
<INTC.O> and Apple Inc <AAPL.O>. (For story, see
[ID:nN23430280]).
                                
 The S&P technology index <.GSPT> dropped 1.3 percent,
weighing the most on the benchmark S&P 500.
                                
 American Express Co and fellow credit card issuer Capital
One Financial Corp <COF.N> said rising customer delinquencies
reduced second-quarter earnings. [ID:nN23419883]
                                
 Still, AmEx shares rose 10 cents to $29.55, even as the S&P
financial sector index <.GSPF> fell 1 percent.
                                
 "The market wants to see progressively better reports and
the last 24 hours have not generated them," said Alan Gayle,
director of asset allocation at RidgeWorth Investments in
Richmond, Virginia.
                                
 "Microsoft earnings are a reminder that the economy is
still soft".
                                
 The Dow Jones industrial average <.DJI> dropped 29.48
points, or 0.33 percent, to 9,039.81. The Standard & Poor's 500
Index <.SPX> fell 5.47 points, or 0.56 percent, to 970.82. The
Nasdaq Composite Index <.IXIC> lost 24.15 points, or 1.22
percent, to 1,949.45.
                                
 U.S. consumer confidence waned in late July to its lowest
reading since April, as tracked by the Reuters/University of
Michigan Surveys of Consumers. [ID:nN24449821]
                                
 Amazon.com Inc <AMZN.O> shares fell 8.4 percent to $86.02 a
day after the Internet retailer reported revenues that missed
analyst estimates. [ID:nN23417518].
                                
 Winding down a week loaded with quarterly reports,
Schlumberger Ltd <SLB.N> posted a sharp drop in earnings and
warned it did not expect a rebound in spending by its oil- and
gas-producing customers this year. [ID:nN24444747]. Its shares
fell 3 percent to $56.07.
                                
 On the upside, toolmaker Black & Decker Corp <BDK.N>
reported second-quarter profit above estimates and raised its
2009 earnings outlook. Its shares jumped 10 percent to $37.11.
[ID:nBNG405750]
                                
 U.S. Treasury Secretary Timothy Geithner said Friday he was
willing to work with lawmakers on shaping an overhaul of
financial regulations, but insisted major changes are
necessary. [ID:nN24347905]. Geithner testified before the U.S.
House Financial Services Committee.
                                
 Geithner, Federal Reserve Chairman Ben Bernanke and Federal
Deposit Insurance Corp Chairman Sheila Bair are testifying
before the U.S. House Financial Services Committee on
regulatory reform.
                                
 The S&P 500 closed Thursday at its highest since the
Election Day in November and the Nasdaq has risen for 12
straight days, its longest run since 1992.
 (Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)