LONDON (ShareCast) - US recession fears still have a hold on the market as investors desert equities and seek the safe haven of government bonds. Trading updates from consumer electronics giants Apple and Motorola have added to concerns about a slow-down in the US economy which could turn into a full-blown recession.

Computer and iPod maker Apple set the tone for today by warning after the market close yesterday that it expects a slow-down in sales and profits in the second quarter. Apple’s share price was sliced, despite first quarter earnings coming in ahead of expectations.

One of the victims of Apple’s success appears to be phone maker Motorola, which slipped after disappointing with an 84% fall in earnings in the fourth quarter. The company’s mobile phone line is facing serious competition in the form of Apple’s iPhone while the company also warned recovery in its handsets will take longer than expected.

The tech-heavy NASDAQ Composite is performing worst of the three major US stock indices, down 60 at 2,231. The Dow-Jones Industrial Average is 181 points lower at 11,789 while the S&P 500 is 24 points in the red at 1,286.

The biggest casualty among leading shares is MGIC Investment, the biggest of the mortgage insurers in the US. MGIC said fourth-quarter claims relating to overdue mortgage payments rose sevenfold.

Network specialist Ciena is caned after announcing yesterday it has agreed to buy privately owned rival World Wide Packets.

Copper miner Freeport-McMoRan’s share price plunged after the company announced a 2.8% decline in fourth quarter earnings, due to increased costs related to its purchase of Phelps Dodge.

Student loan provider SLM plunged into the red in the fourth quarter. The company announced a net loss of $1.64bn after making massive provisions for defaulting loans.

On the bright side, United Technologies, which makes Otis lifts, Pratt & Whitney engines and Sikorsky helicopters, had a good fourth quarter. Fourth quarter profit jumped 23% on the back of strong international demand for aircraft parts and lifts.

Pfizer, the world’s largest drugs company said fourth-quarter net income tumbled 70% to $2.9 billion, reflecting the recent sale of its consumer unit to Johnson & Johnson. Income per share was 42 cents a share, though this was boosted to 52 cents a share after the exclusion of some exceptional items; a figure which beat analysts’ estimates of 47 cents a share.

Berkshire Hathaway, the investment vehicle run by the “sage of Omaha”, Warren Buffet, bought a 3% stake in the world's biggest reinsurer, Swiss Re. Under the terms of the sale Berkshire Hathaway will assume 20% of Swiss Re’s property and casualty business for the next five years.

Banks are going well on hopes that interest rate cuts will revive the lending market. Bank of America, Wachovia and KeyCorp are all sharply higher on further consideration of yesterday’s results, with Wachovia the pick of the bunch.

Higher energy prices and a deferred Canadian tax benefit boosted ConocoPhillips’s fourth quarter net income. The oil company’s shares fell back however in line with lower oil prices, though to a lesser extent than oil giants Exxon and Chevron.

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