Market diary.

Inflation fears continued to weigh on U.S. stocks, although they managed to bounce back after a heavy sell-off during the week ended June 14. The Dow Jones Industrial Average fell 1 percent to 10,816.90, while the Standard & Poor's 500 Index dropped 2.1 percent to 1,230.01. The Nasdaq Composite Index shed 3.1 percent to 2,086. The LABJ 200 Index gave back 2.4 percent to 126.05. Declining issues told the story: 169 stocks declined for the week while just 27 advanced. Four issues remained unchanged. Every sector posted declines except real estate, which bounced back with a 10.2 percent gain after taking a hit in previous sessions. Automotive shares fell 8.5 percent followed by software, down 7.8 percent, and communications, off 7.7 percent. Internet postage firm Stamps.com fell 15 percent to $27.01 per share, though the company was recently added to the S&P SmallCap 600 Index. California Pizza Kitchen Inc. has taken a beating, falling 18 percent since mid-May to $26.69 a share. On the upside, analog semiconductor maker Diodes Inc. beat the odds with a 14 percent gain to $39.83 a share. Professional staffing firm On Assignment Inc. fell 18 percent to $9.90 a share. Shares of Walt Disney Co. fell 6.4 percent to $28.69 a share after A.G. Edwards analyst Michael Kupinski downgraded the stock citing a "deceleration of growth."