2:00PM New York – Microsoft said that it no longer can estimate its annual earnings and may cut as many as 5,000 jobs. Aflac plunged on worries of UK banks holdings in its portfolio. AMR Corp dropped on a loss but Southwest gained. Apple declined on 2% rise in income.

The stocks were on the decline after Microsoft job losses and lack of earnings guidance from the company. Weak earnings also dragged stocks of airlines, insurers and banks.

Of the stocks in S&P 500 index, 67 increased, 432 declined and 1 was unchanged.

Huntington Bancorp led the decliners in the S&P 500 index with a loss of 37% followed by losses at Aflac of 36%, in Fifth Third Banc of 29.9%, in CIT Group of 14.8% and in Regions Financial of 14%.

State Street Corp led gainers in the S&P 500 index with a rise of 24.6% followed by increase in Southwest Air o 14.4%, in Darden Restaurant of 8.5%, in UnitedHealth Group of 7.6%, in Apple Inc of 7.6%.

Other Movers

Aflac Incorporated (AFL) dropped 34.3% or $12.46 to $23.81. The largest seller of supplemental insurance in the U.S. and Japan plunged after Morgan Stanley called the insurer’s portfolio investments in U.K. banks that may have lost most of its value.

AMR Corporation (AMR) fell 23.7% or $2.48 to $7.98 after the largest airline in the world said fourth quarter revenues fell 3.7% to $5.47 billion from $5.68 billion a year ago. Net loss in the quarter was $340 million or $1.22 per diluted share compared to net loss of $69 million or 28 cents per share a year ago.

Apple Inc (AAPL) added 8.6% or $7.15 to $89.98 after the personal computers, portable digital music players, and mobile communication devices said first quarter revenues rose 6% to $10.2 billion from $9.6 billion a year ago. Net income in the quarter rose 2% to $1.61 billion or $1.78 per diluted share compared to net income of $1.58 billion or $1.76 per share a year ago.

Citigroup Inc (C) lost 12.8% or 47 cents to $3.20 after the global financial services company said that Richard D. Parsons, will succeed Win Bischoff as chairman of the board of directors, effective February 23.

CIT Group Inc (CIT) fell 13.3% or 38 cents to $2.46 after the global commercial finance company reported fourth quarter net revenues fell 20% to $1.3 billion from $1.4 billion a year ago. Net loss in the quarter was $203.8 million or 69 cents per diluted share compared to net loss of $131 million or 69 cents per share a year ago.

Columbus Mckinnon Corporation (CMCO) jumped 13.6% or $1.60 to $13.32 after the marketer of material handling equipment reported third quarter net sales rose 12.9% to $165.1 million from $146.2 million a year ago. Net income in the quarter fell 61.8% to $3.8 million or 20 cents per diluted share compared to net income of $10 million or 53 cents per share a year ago.

Comerica Incorporated (CMA) climbed 12.5% or $1.74 to $15.64 after the financial company reported fourth quarter net interest income fell 12% to $431 million from $489 million a year ago. Net income in the quarter fell 83% to $20 million or 2 cents per diluted share compared to net income of $119 million or 79 cents per share a year ago.

DryShips Inc (DRYS) fell 16.6% or $2.42 to $12.08 after the owner of dry bulk commodities ship owner said it would suspend its dividend, sell ships and cancel orders for ships to preserve capital amid lower freight rates and tight credit markets. The ship owner estimates a fourth quarter loss on one-time charges that include losses in interest rate swaps of $177 million.

eBay Inc (EBAY) dropped 6.1% or 81 cents to $12.47 after the online marketplace operator said fourth quarter revenues fell 7% to $2.04 billion from $2.2 billion a year ago. Net income in the quarter fell 31% to $367 million or 29 cents per diluted share compared to net income of $531 million or 39 cents per share a year ago.

Eclipsys Corporation (ECLP) dropped 28.4% or $3.23 to $8.11 after the health-care information technology provider lowered the fourth quarter 2008 revenue and earnings projections. The company now expects revenues in the range from $124 million to $127 million and net income in the range between $4million and 7 cents a share and $6 million or 11 cents per diluted common share.

Fifth Third Bancorp (FITB) lost 25.0% or $1.00 to $2.99 after Ohio’s second-largest bank posted a loss for the fourth quarter of $3.82 a share. Analysts were looking for the bank to earn between 2 cents and 4 cents a share.

Hexcel Corporation (HXL) gained 7.4% or 47 cents to $6.78 after the maker of structural materials for the aerospace industry said fourth quarter revenues fell 8.8% to $289.5 million from $317.6 million a year ago. Net income in the quarter rose 118% to $28.3 million or 29 cents a diluted share compared to net income of $13 million or 13 cents per share a year ago.

Huntington Bancshares Incorporated (HBAN) plunged 28.4% or $1.31 to $3.30 after the Ohio based regional bank lost in its fourth quarter $417.3 million or $1.20 per share and compared with a net loss of $239.3 million or 65 cents a year earlier. For 2008, Huntington lost $113.8 million or 44 cents per share.

Interactive Brokers Group, Inc (IBKR) slid 11.6% or $2.15 to $16.24 an automated global electronic market maker and broker reported fourth quarter net revenues rose 8% to $429.3 million from $397.5 million a year ago. Net income in the quarter rose 7% to $20.3 million or 49 cents per diluted share compared to net income of $18.9 million or 46 cents per share a year ago.