(Updates to mid-afternoon)

By Caroline Valetkevitch

NEW YORK, Jan 23 (Reuters) - U.S. stocks fell for a sixth session on Wednesday, led by the Nasdaq's drop of more than 2 percent as profit forecasts from Apple Inc (AAPL.O: Quote, Profile, Research) and Motorola (MOT.N: Quote, Profile, Research) fanned worries about a recession and the outlook for tech.

For the second day, the Nasdaq crossed the threshold that signals a bear market.

By mid-afternoon, though, all three major indexes had sharply pared some of their earlier losses, with the financial sector providing a bright spot. The S&P financial index was up 3.2 percent.

Energy stocks were among top decliners, including Exxon Mobil Corp. (XOM.N: Quote, Profile, Research), down 3.5 percent at $79.58. Standard & Poors Equity Research said it had cut its energy sector outlook. The S&P energy sector index was down 4 percent.

After Tuesday's closing bell, Apple forecast a quarterly profit below analysts' expectations and reported disappointing holiday-season iPod shipments. For details, see [ID:nN22551914]. Apple's stock sank 15.3 percent to $131.80 on the Nasdaq.

"It's a trend that's been in existence for a while. It's a concern of a recession, and the markets are going to move to a level that will start to discount a recession before it even apears," said Steve Goldman, market strategist at Weeden & Co., in Greenwich, Connecticut. "When it starts to appear, it will be discounted."

The Dow Jones industrial average .DJI was down 77.22 points, or 0.65 percent, at 11,893.97. The Standard & Poor's 500 Index .SPX was down 12.08 points, or 0.92 percent, at 1,298.42. The Nasdaq Composite Index .IXIC was down 49.94 points, or 2.18 percent, at 2,242.33.