RealTime IT News

Stocks Battered Again

Stocks plunged again Friday, giving stocks their worst week since March 2003, as a stronger than expected reading on second-quarter GDP did little to quell growing credit market fears.

News that the economy rebounded from a 0.6% showing in the first quarter to a better than expected 3.4% gain in the second quarter did little to help investor sentiment, as early gains turned into a 1.5% drubbing on the major indexes. Equipment and software spending grew at a 2.3% rate in the second quarter and inflation was tame, but news that consumer spending grew just 1.3% exacerbated credit and slowdown fears.

Cymer was a rare standout, soaring 15% after its profit growth of 10% exceeded Wall Street estimates.

Celestica , Foundry , Integrated Device and Microsemi also gained on their earnings reports.

But the biggest movers were to the downside.

Rambus and QLogic plunged about 15% each after missing estimates.

Isilon lost a third of its value after lowering its outlook, and Netgear plunged 24% on its results.

Other earnings decliners included Western Digital , VeriSign , Compuware , CNET , Ingram Micro , Lawson , Riverbed and Ultimate Software .

The Nasdaq fell 37 to 2562, the S&P 500 tumbled 23 to 1459, and the Dow plunged 208 to 13,265. Volume declined to 4.95 billion shares on the NYSE, and 2.8 billion on the Nasdaq. Declining issues led by a 22-10 margin on the NYSE, and 22-9 on the Nasdaq. Downside volume was 82% on the NYSE, and 81% on the Nasdaq. New highs-new lows were 22-405 on the NYSE, and 64-301 on the Nasdaq.