Earnings Fail to Boost Sagging Market
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We're right in the middle of the earnings season, and while many tech companies posted better than expected earnings Monday and Tuesday, the overall market stayed in the red.
At midday, internet.com's Internet Stock Index fell 20.22, or 3.78 percent to 514.16. The Nasdaq Composite was down 83.56 to 2746.73 and the Dow Jones industrial index fell 97.51 to 11090.17.
The majority of earnings reported this week beat analysts' estimates, and while in the past that has been enough to propel stocks higher, investors were largely expecting good earnings news this time around, and as a result started a sell-off.
Among the ISDEX stocks, ISS Group Inc. (ISSX) took the worst hit on news of its earnings. The company reported a net income of $.04 per share in the second quarter, and Goldman Sachs downgraded it to market outperformer. Its stock was down midday 11-3/4, or 30.67 percent, at 26-9/16.
Elsewhere in Internet news, Yahoo! Inc. (YHOO) Tuesday completed its acquisition of multimedia site Broadcast.com (BCST). Yahoo! said it plans to integrate Broadcast.com's streaming audio and video content into the megaportal. The value of the deal is $5.04 billion in cash and stock.
Following Tuesday's trend, Yahoo! was down 3-1/4 to 146-1/4 and Broadcast.com fell 2-1/2 to 113.
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