US stocks fall, led by Microsoft after EU fine

NEW YORK, July 12 (Reuters) U.S. stocks fell on Wednesday after European antitrust regulators fined Microsoft Corp. and biotechnology company Genentech Inc. disappointed investors with slower-than-expected sales of a cancer drug.

European Union regulators fined Microsoft, the world's largest software maker, about 7.3 million for defying a 2004 antitrust ruling. For details, see ID:nL12250407. Microsoft shares declined 1.2 percent to .82 and were the biggest drag on S&P 500 and Nasdaq 100 indexex.

Genentech, the world's second-biggest biotech company, hurt shares after posting quarterly results showing sales growth of its colon cancer drug Avastin trailed expectations.

Its shares fell 2.8 percent to .71 on the New York Stock Exchange.

''The numbers you got were pretty decent, but companies are getting no gratification from them. The initial responses have been nit-picky. They've been looking for something not to like in the company numbers,'' said Joe Liro, economist and market strategist at Stone&McCarthy Research Associates in Princeton, New Jersey.

The Dow Jones industrial average was down 16.49 points, or 0.15 percent, at 11,118.28. The Standard&Poor's 500 Index was down 1.95 points, or 0.15 percent, at 1,270.57. The Nasdaq Composite Index was down 12.13 points, or 0.57 percent, at 2,116.73.

Corporate earnings reports on Wednesday showed a mixed picture. Newspaper publisher Gannett Co. Inc. reported an 8 percent drop in its quarterly profit due to a weak advertising environment. ID:nWEN0945. Gannett shares fell 0.7 percent to .54 on the NYSE.

Shares of M&T Bank Corp. rose 1.3 percent to 9.95 after it said quarterly profit rose 8 percent. ID:nWEN0947.

Also on the corporate front, General Motors Corp. Chief Executive Rick Wagoner said the proposed alliance between GM, Nissan and Renault was an ''interesting idea'' that would get full consideration from GM leadership. ID:nN11200670 GM shares rose 0.5 percent to .66.

Oil rose over a barrel, boosting energy shares on Iran's recalcitrance on its nuclear program and expectations of a decline in U.S. gasoline stocks. Weekly government data on U.S. oil inventories are due out at 10:30 a.m. (1430 GMT).

REUTERS DKS HS2017