RealTime IT News

Microsoft Can't Overcome Weak GDP Report

Strong earnings from Microsoft gave tech stocks an early boost on Friday, but sellers soon took over on news that the economy grew at a slower than expected pace in the fourth quarter.

Microsoft eked out a gain on earnings and revenues that topped Wall Street forecasts, but the rest of the market finished lower on a Commerce Department report that the economy grew 3.1% in the fourth quarter, the slowest growth rate in two years and below economists' 3.5% estimates.

Jitters ahead of this weekend's elections in Iraq also weighed on stocks.

The Nasdaq lost 11 to 2035, the S&P 500 gave back 3 to 1174, and the Dow fell 40 to 10,427. Volume rose to 1.64 billion shares on the NYSE, but declined to 2.1 billion on the Nasdaq. Decliners led 17-15 on the NYSE, and 17-12 on the Nasdaq. Downside volume was 60% on the NYSE, and 63% on the Nasdaq. New highs-new lows were 101-24 on the NYSE, and 68-44 on the Nasdaq.

SanDisk , Microstrategy , Xyratex , Aspect , Catapult and Kronos rose on their results.

Broadcom , Novellus , Overstock , Gateway , Foundry , Sanmina and LookSmart slumped on their results.

August Tech surged 18% on a takeover offer from Rudolph Tech .