RealTime IT News

Tough Day for Telecoms

News of a blockbuster telecom equipment deal between Nokia and Siemens did little to help the rest of the sector on Monday.

Nortel shares fared the worst, shedding 10% on competitive concerns, as the company was already left behind by the pending merger between Lucent and Alcatel .

Motorola is another company that may now need to look for a partner, analysts said, but Motorola shares held up better on the day than Nortel, which has been battered on accounting issues and losses. Nortel shares have slid from $8.50 in early 2004 to close at $2.04 on Monday.

Juniper was another losing ground on Monday, falling 5% despite having a router deal with Siemens.

Vonage continued its dismal post-IPO performance, losing 11% on a patent infringement lawsuit from Verizon . Vonage has now lost half its value from its debut last month.

The broader market stumbled Monday after a survey of home builder sentiment hit its lowest level in 11 years.

The Nasdaq lost 19 to 2110, the S&P 500 fell 11 to 1240, and the Dow dropped 72 at 10,942. Volume declined to 2.16 billion shares on the NYSE, and 1.75 billion on the Nasdaq. Decliners led 24-8 on the NYSE, and 22-8 on the Nasdaq. Downside volume was 79% on the NYSE, and 75% on the Nasdaq. New highs-new lows were 31-156 on the NYSE, and 51-138 on the Nasdaq.

Peerless fell 21% on the loss of an OEM deal, while Monster gained 4.5% on an upgrade.