Google Leads Tech Stocks Lower
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Google (NASDAQ: GOOG) fell for a second day Tuesday after another analyst said the company could be hit by the slowing economy and falling consumer confidence.
Goldman Sachs analyst James Mitchell lowered estimates on Google, following a similar move by Barclays a day earlier.
Mitchell lowered his estimate for Google's revenue growth from 4% sequentially to 1%, citing a weakening search ad market. Google lost 2.3% to $311.46 after bouncing off a three-year low of $300.52.
The rest of the market lost about 2% despite plans to step up housing market rescue efforts, as investors remain worried about the depth of an economic plunge that began with the bankruptcy of Lehman Brothers in mid-September. Retail sales data on Friday will likely be the biggest economic report of the week.
Dell (NASDAQ: DELL) lost 4.5% after saying its has no plans to launch a new portable music player.
Nokia (NYSE: NOK) lost 6.7% on more job cuts.
Mentor Graphics (NASDAQ: MENT) tumbled after lowering guidance, while Vodafone (NYSE: VOD) rose despite cutting its outlook.
Bidz.com (NASDAQ: BIDZ) lost 30% on its results.
The Nasdaq lost 35 to 1580, the S&P fell 20 to 898, and the Dow lost 176 to 8693. Volume rose to 5.01 billion shares on the NYSE, and 1.95 billion on the Nasdaq. Decliners led by a 28-6 margin on the NYSE, and 21-7 on the Nasdaq. Downside volume was 85% on the NYSE, and 87% on the Nasdaq. New highs-new lows were 9-348 on the NYSE, and 6-352 on the Nasdaq.