Woods, without a victory on the PGA Tour since autumn 2009, fell to Nick Watney in the second round 1-up. Woods had a chance to send the match to extra holes, but missed a 6-foot birdie putt on the 18th green of the Ritz Carlton Golf Club course. He will continue his attempt to regain his old form when he takes part in the Honda Classic next week.
World No. 1 and top-seeded Luke Donald lost in the opening round Wednesday but the remaining top five seeds made it through to Friday's third round.
No. 2 Rory McIlroy ousted Anders Hansen 3 & 2, third-seeded Lee Westwood was a 3 & 2 winner over Robert Karlsson, No. 4 Martin Kaymer survived with a 2-up decision over David Toms and No. 5 Steve Stricker fought off Louis Oosthuizen 1-up.
The most one-sided victory of the day belonged to Dustin Johnson, who smashed Francesco Molinari 7 & 5.
Brandt Snedeker, who came from six shots behind to defeat Kyle Stanley in the closing round of the PGA Tour event at Torrey Pines, defeated Stanley again Thursday. Snedeker held on for a 2 & 1 decision that earned him a Friday meeting with Peter Hanson.
The quarterfinals and semifinals will be played Saturday and the 36-hole title match will be contested Sunday.
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