Stocks Slump Ahead of Earnings
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Stocks fell Monday after Citigroup said mortgage market troubles are continuing and joined with JP Morgan Chase and Bank of America in a Treasury Department-organized $80 billion bailout of the credit market.
The news raised fears that the crisis isn't over, sending investors running for cover a day before some big earnings reports. Tech sector leaders like Google, Research in Motion, VMware and Baidu.com all fell 2.5% or more.
Tuesday will see earnings reports from IBM, Intel and Yahoo. eBay will report on Wednesday, and AMD and Google on Thursday, among other names reporting this week.
Tektronix was Monday's big winner, soaring 34% on a takeover offer from Danaher.
Level 3 fell 11% on news that it will replace its CFO, raising concerns about the company's quarterly results, which will be reported Oct. 23.
InfoSpace jumped 9% on news that it will sell its mobile services business to Motricity.
Broadcom gained 4% on a new 3G wireless chip, and Tellabs was up on takeover speculation.
The Nasdaq lost 25 to 2780, the S&P fell 13 to 1548, and the Dow lost 108 to 13,984. Volume rose to 3.1 billion shares on the NYSE, and 2.02 billion on the Nasdaq. Decliners led by a 23-9 margin on the NYSE, and 21-9 on the Nasdaq. Downside volume was 75% on the NYSE, and 71% on the Nasdaq. New highs-new lows were 157-91 on the NYSE, and 137-112 on the Nasdaq.