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RealTime IT News

Triple Threat Sinks Stocks

Stocks fell sharply Tuesday on war fears, an earnings warning from Caterpillar, and comments by Warren Buffett that stocks remain overvalued.

Homebuilders were hit hard on disappointing results from Lennar .

The Nasdaq fell 12 to 1307, the S&P 500 lost 12 to 821, and the Dow dropped 132 to 7704. Volume rose to 1.21 billion shares on the NYSE, but declined to 1.21 billion on the Nasdaq. Decliners led 20-11 on the NYSE, and 20-12 on the Nasdaq. Downside volume was 86% on the NYSE, and 75% on the Nasdaq. New highs-new lows were 74-114 on the NYSE, and 61-77 on the Nasdaq.

After the close, Corning reaffirmed guidance, and Tibco warned. UTStarcom said it will acquire CommWorks from 3Com .

During the day, Brocade surged 6.2% on reports of insider buying.

Amazon , up 2.1%, will enter the domain name business.

EMC , down 4.1%, and Hitachi , off 0.7%, settled a lawsuit.

Microsoft , down 2%, set pricing for the release of Windows Server 2003. Also, the Lindows.com trial was delayed.

IBM , off 0.8%, will recall 56,000 monitors.

HP , off 2%, will boost data center cooling.

Oracle , off 0.5%, and Sprint , down 2.6%, announced a Java development partnership.

Broadcom , up 0.7%, and Microtune , down 8.5%, continued their war.

Cray plunged 22% on contract renewal concerns.

MicroStrategy and Research In Motion rose on positive analyst comments.

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