Earnings disappointments and weakening technology shares pushed stocks sharply lower yesterday, extending the market's week-long drop to nearly 400 points.

The Dow Jones industrial average dropped 126.16 points - or by 1.4% - to 8,695.60. The bluechip index has fallen 374.87 points since December 7.

The Standard and Poor's 500 fell 24.13 to 1,142.33, and the technology-heavy Nasdaq composite index slipped a steep 58.80 to 1,970.51.

Declining issues outnumbered advancers by an 11-to-4 margin on the New York Stock Exchange, with 2,283 up, 828 down and 455 unchanged.

The Russell 2000 index was off 7.54 to 387.83.