NEW YORK (AP) _ Stocks pulled back again today, with a sudden flurry of bad news in the computer-chip sector threatening to disrupt the market's technology-led rebound.

At 11 a.m. on Wall Street, the Dow Jones industrial average was down 35.53 at 8,657.75, recovering from a 76-point slide. The blue-chip barometer slipped 21 points on Wednesday after gaining 290 points the prior two days.

Broad-market indicators were also posting modest losses for a second straight session.

Semiconductor stocks led the decline as Merrill Lynch lowered its investment rating on Intel, down 2 5/16 at 87 1/4, and Texas Instruments, down 1 5/16 at 59 3/16.

The downgrades came a day after a series of discouraging business updates on from chipmakers Analog Devices, LSI Logic and National Semiconductor, which fell 1 15/16 to 11 11/16 following late Wednesday's warning.

The Standard & Poor's 500 index was down 5.34 at 1,092.72, and the technology-heavy Nasdaq composite index was down 9.57 at 1,833.11.

Declining issues outnumbered advancers by a 7-to-5 margin on the New York Stock Exchange, where volume came to 183.85 million shares, down from Wednesday's early tally.

The NYSE composite index was down 1.43 at 548.62, and the American Stock Exchange composite index was down 1.17 at 664.42.

Overseas, Tokyo's Nikkei stock average fell 0.1 percent. In afternoon trading, Frankfurt's DAX index was down 1.8 percent and London's FT-SE 100 was down 1.1 percent.