RealTime IT News

Brocade, Data Domain Surge as Stocks Tumble

Stocks fell sharply Thursday as economic worries resurfaced, but there was some good news in the data storage sector and signs of health in the market for venture-backed IPOs.

Brocade (NASDAQ: BRCD) shares jumped 14% after its results topped Wall Street forecasts, as the storage and network switch company appears to be giving Cisco (NASDAQ: CSCO) some competition.

And Data Domain (NASDAQ: DDUP) soared 34% on news that it will be acquired by NetApp (NASDAQ: NTAP).

The market for venture-backed IPOs also came to life this week for the first time since Rackspace Hosting (NYSE: RAX) went public last August, with strong first-day performances from OpenTable (NASDAQ: OPEN) and SolarWinds (NYSE: SWI).

Tessera Tech (NASDAQ: TSRA) soared 21% after winning a patent ruling against Qualcomm (NASDAQ: QCOM), Motorola (NYSE: MOT) and others.

Tech Data (NASDAQ: TECD) was another winner, surging 10% after its quarterly results blew past analysts' estimates.

But the rest of the market fell on fears of a U.S. credit rating downgrade following a UK downgrade by S&P, along with weaker than expected readings for Mid-Atlantic manufacturing and jobless claims.

Dell (NASDAQ: DELL) lost 3% ahead of its earnings report next week.

After the close, Salesforce.com (NYSE: CRM) fell on its earnings news, while Autodesk (NASDAQ: ADSK) surged on its results.

The Nasdaq lost 32 to 1695, the S&P 500 dropped 15 to 888, and the Dow fell 129 to 8292. Volume declined to 6 billion shares on the NYSE, and 2.26 billion on the Nasdaq. Decliners led by a 27-9 margin on the NYSE, and 19-8 on the Nasdaq. Downside volume was 77% on the NYSE, and 77% on the Nasdaq. New highs-new lows were 14-41 on the NYSE, and 19-18 on the Nasdaq.