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Cybersecurity stocks rise after outage

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Intuitive hits record high after quarterly results beat

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Travelers Companies ( TRV ) weighs on Dow

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Indexes down: Dow 0.95%, S&P 0.73%, Nasdaq 0.85%

(Updates to 2:33 p.m. EDT)

By Stephen Culp

July 19 (Reuters) - U.S. stocks added a third straight

day to their sell-off on Friday as lingering chaos related to a

global technical outage caused by a software glitch added

uncertainty to an already-anxious market.

The far-reaching, worldwide tech outage disrupted operations

across multiple industries including airlines, banking and

healthcare after the glitch in cybersecurity firm Crowdstrike's ( CRWD )

software caused Microsoft's ( MSFT ) Windows operating

system to crash.

While the flaw was identified and fixes deployed, technical

issues continue to affect some services.

Crowdstrike ( CRWD ) shares slid 12.1%, while rival cybersecurity

firms Palo Alto Networks ( PANW ) and Sentinal One were up

1.6% and 8.5%, respectively.

All three major U.S. stock indexes were lower, with the Dow

Jones Industrial average suffering the worst of it.

On a weekly basis, both the Nasdaq and the S&P 500 were on

track for their worst week since April, while the Dow, having

reached a series of all-time closing highs earlier in the week,

appeared primed to post a Friday-to-Friday gain.

The tech-heavy Nasdaq seemed headed toward snapping its

six-week winning streak.

"If you're trying to fly today it was not a fun day, but

overall for markets it doesn't appear to be too big of a

hiccup," Ryan Detrick, chief market strategist at Carson Group

in Omaha, Nebraska. "After a historic rally since May, this

weakness seems to be just the market catching its breath."

"You have to be kind of impressed how market participants

have taken today's huge outages in stride," Detrick added.

The smallcap Russell 2000 - a beneficiary of a recent

pivot away from megacap growth stocks - was last off 0.6%.

The CBOE Market volatility index, considered a gauge

of investor anxiety, touched its highest level since late April.

Nvidia ( NVDA ) shares led a sell-off in chips. The

Philadelphia SE Semiconductor index underperformed the

broader market, tumbling 2.8%.

Elsewhere, Federal Reserve Bank of New York President John

Williams reiterated the central bank's commitment to bringing

inflation down to its 2% target.

Financial markets have priced in a 93.5% likelihood that the

Fed will enter a rate-cutting phase at the conclusion of its

September meeting, according to CME's FedWatch tool.

At 2:33 p.m. EDT, the Dow Jones Industrial Average

fell 387.25 points, or 0.95%, to 40,277.77, the S&P 500

lost 40.52 points, or 0.73%, to 5,504.07 and the Nasdaq

Composite dropped 151.31 points, or 0.85%, to 17,719.92.

Second-quarter earnings season approaches the end of its

first full week, with 70 of the companies in the S&P 500 having

reported. Of those, 83% have beaten consensus, according to

LSEG.

Analysts now see aggregate year-on-year S&P 500 earnings

growth of 11.1%, an improvement over the 10.6% estimate as of

July 1.

Next week, a swath of high-profile results is expected from

Tesla, Alphabet, IBM ( IBM ), General Motors ( GM )

, Ford and a host of other companies.

"It's early in earns season, but things have been

impressive," Carson Group's Detrick said. "But the big boys are

starting to report next week and what we want to hear is how

strong the consumer is and what's the outlook for future

economic growth."

Eli Lilly ( LLY ) advanced 0.7% after China approved its

weight-loss drug tirzepatide, while Intuitive Surgical ( ISRG )

jumped 8.8% after a second-quarter results beat.

Travelers tumbled 7.3% on lower-than-expected growth

in net written premiums.

Netflix ( NFLX ) fell 0.9% in choppy trading after the

streaming giant cautioned third-quarter subscriber additions

would be lower than a year earlier.

Oilfield services provider SLB rose 1.7% after

strong second-quarter profit.

Declining issues outnumbered advancing ones on the NYSE by a

2.14-to-1 ratio; on Nasdaq, a 1.77-to-1 ratio favored decliners.

The S&P 500 posted 27 new 52-week highs and 4 new lows; the

Nasdaq Composite recorded 39 new highs and 81 new lows.