* Apple, IBM slide after earnings
* China raises interest rates in bid to cool economy
* Indexes down: Dow 0.8 pct; S&P 0.7 pct; Nasdaq 0.8 pct (Updates to midday, changes byline)
By Caroline Valetkevitch
NEW YORK, Oct 19 (Reuters) - U.S. stocks declined on Tuesday as financial results from Apple and IBM disappointed investors after the recent run-up in technology shares.
Apple's shares fell 1.8 percent to $312.16 and weighed on the Nasdaq after iPad sales fell short of some analysts' expectations. Only the day before, Apple shares hit a lifetime high, but technical measures showed they were at their most overbought levels since April.
International Business Machines Corp was lower after it won fewer technology service deals than expected in the third quarter. Its shares were down 2.9 percent at $138.64, even though it announced stronger profits and raised its full-year outlook..
"I think it's just a case of companies not beating expectations as much as people had hoped for," said Giri Cherukuri, head trader at OakBrook Investments LLC in Lisle, Illinois.
The Dow Jones industrial average was down 89.00 points, or 0.80 percent, at 11,054.69. The Standard & Poor's 500 Index was down 8.27 points, or 0.70 percent, at 1,176.44. The Nasdaq Composite Index was down 20.73 points, or 0.84 percent, at 2,459.93.
Shares of Apple and IBM had advanced sharply heading into the earnings reporting season.
IBM shares rose 16 percent from the end of August until its financial results late on Monday, while Apple shares jumped 30.8 percent during that time and the S&P 500 was up 12.9 percent.
Another factor weighing on Wall Street was China's decision to hike interest rates, effective on Wednesday. Investors worry about the impact from the world's biggest fast-growing economy seeking to cool its growth..
The energy sector, which would be affected by reduced consumption in China, was the worst performer among the S&P 500 sectors, down 1.7 percent.
In the financial sector, Citigroup Inc dropped 0.5 percent to $4.15 after the U.S. Treasury Department said it launched a sale of 1.5 billion of its Citi shares under a prearranged trading plan. (Reporting by Caroline Valetkevitch; Additional reporting by Rodrigo Campos; Editing by Kenneth Barry)