NEW YORK (CNN/Money) - U.S. stocks were weaker early Friday as investors took in Morgan Stanley's estimate cut on chip leader Intel and some lackluster economic reports.

Around 10 a.m. ET, the Nasdaq composite lost 8.54 to 1,336.57. The Dow Jones industrial average lost 75.04 to 8,743.10. The Standard & Poor's 500 index lost 6.93 to 923.32.

Morgan Stanley cut 2002 and 2003 profit estimates on No. 1 chipmaker Intel (INTC: down $0.29 to $18.32, Research, Estimates), saying that the personal computer market has entered into an extended period of moderating growth. The firm cut 2002 earnings per share estimates to 55 cents from 59 cents and 2003 estimates to 80 cents from 95 cents. The firm also lowered its 5-year earnings growth forecast and cut its price target.

Late Thursday, Dell Computer (DELL: up $0.16 to $27.30, Research, Estimates) reported earnings per share of 19 cents in the second quarter, in line with estimates and up from the 16 cents earned in the year-earlier period. The company also said that it expects higher revenue in its third quarter. On Friday, Salomon Smith Barney added the company to its recommended list and removed computer hardware maker IBM (IBM: up $0.89 to $77.39, Research, Estimates).

Sanford Bernstein downgraded Procter & Gamble (PG: down $1.69 to $89.63, Research, Estimates) and other household products makers to "market perform" from "outperform," saying it is time to shift money out of the sector.

In the day's economic news, July consumer prices rose 0.1 percent after rising 0.1 percent in June. Excluding food and energy prices, the so-called "core" CPI rose 0.2 percent after rising 0.1 percent in June. Economists surveyed by Briefing.com were expecting a rise of 0.2 percent in both CPI and core CPI, according to Briefing.com. The report seemed to make clear that inflation is not a threat currently.

July housing starts fell to an annual rate of 1.65 million units, a little below the 1.68 million units consensus. Building permits were stronger than expected at 1.7 million units, versus the 1.680 million unit consensus.

The University of Michigan's preliminary consumer sentiment report for August came in a little below forecasts at 87.9, versus the 88.1 reading in July.

Friday is also a "double witching" day in which options on stocks and stock indexes expire, often a time of volatility.

European markets were mixed at midday, while Asian-Pacific stocks finished mixed Friday, with Tokyo's Nikkei index down 0.1 percent.

Treasury prices rose in early trading, pushing the 10-year note yield down to 4.15 percent from at 4.18 percent Thursday. The dollar was flat against the yen and euro.

Brent oil futures slipped 8 cents to $26.77 a barrel in London, where gold was lower in early trading.