Financials Drag Stocks Lower Once Again
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Another round of downgrades and turmoil in the financial sector sent stocks tumbling on Monday, while Jabil Circuit (NYSE: JBL) was a bright spot in the tech sector.
Despite losses of more than 1% in the major averages, Jabil shares rocketed 9% after a Raymond James analyst upgraded the stock to "strong buy" on an improved outlook for the company. The contract manufacturer which boasts some of the biggest names in technology as customers will report quarterly results June 19.
Palm (NASDAQ: PALM) rose 6% after IDC reported that the company gained share in the smart phone market in the first quarter.
Intel (NASDAQ: INTC) was up a fraction on an industry report of strong sales for the chip sector in April and on a Financial Times report of strong demand for its "Atom" chips.
Level 3 (NASDAQ: LVLT), Nvidia (NASDAQ: NVDA), Comcast (NASDAQ: CMCSA) and Sirius (NASDAQ: SIRI) also finished with small gains, but there wasn't much in the way of good news for the rest of the sector, as the rest of the Nasdaq's 25 most active issues ended the day in the red with the exception of one biotech name, Acorda Therapeutics (NASDAQ: ACOR).
TiVo (NASDAQ: TIVO) tumbled 9% on a patent dispute with Dish Network (NASDAQ: DISH) and EchoStar (NASDAQ: SATS).
The Nasdaq lost 31 to 2491, the S&P fell 14 to 1385, and the Dow tumbled 134 to 12,503. Volume declined to 3.71 billion shares on the NYSE, and 1.99 billion on the Nasdaq. Decliners led by a 23-10 margin on the NYSE, and 20-9 on the Nasdaq. Downside volume was 75% on the NYSE, and 75% on the Nasdaq. New highs-new lows were 59-86 on the NYSE, and 73-136 on the Nasdaq.