Tech Stocks Slammed in Market U-Turn
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Much better than expected quarterly results from Amazon.com (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) have done little for the rest of the stock market, which got hit again today.
In the two days since the two companies reported blow-out earnings numbers, the Nasdaq has lost 1 percent and the rest of the market more than 2 percent, as worries about the financial sector and the pace of economic recovery have once again taken over.
On Friday and today, the market gave up big early gains to close sharply lower. The Nasdaq was up 1.5 percent today before ending lower by 0.6 percent, and the Dow and S&P lost more than 1 percent each.
Still, companies reporting strong results seem to be faring well. Amazon hit another all-time high today after eclipsing its December 1999 peak on Friday, and Microsoft, Intel (NASDAQ: INTC), Marvell (NASDAQ: MRVL) and SanDisk (NASDAQ: SNDK) all ended the day with gains.
Sohu (NASDAQ: SOHU), Changyou (NASDAQ: CYOU), Tellabs (NASDAQ: TLAB) and General Cable (NYSE: BGC) tumbled on sales and earnings concerns.
Verizon (NYSE: VZ) and Corning (NYSE: GLW) lost ground despite better than expected earnings.
After the close, Baidu (NASDAQ: BIDU) tumbled after the Chinese Internet search leader reported strong results but offered a disappointing outlook.
The Nasdaq lost 12 to 2141, the S&P shed 12 to 1066, and the Dow fell 104 to 9867. Volume rose to 6.36 billion shares on the NYSE, but declined to 2.34 billion on the Nasdaq. Decliners led by a 28-9 margin on the NYSE, and 20-6 on the Nasdaq. Downside volume was 87 percent on the NYSE, and 69 percent on the Nasdaq. New highs-new lows were 170-36 on the NYSE, and 92-27 on the Nasdaq.