RealTime IT News

Black Week Ends On Dismal Note

Capping a week of historically disastrous proportions, stocks on Friday continued their freefall in the wake of the deadly Sept. 11 terrorist attacks on the U.S., with all major exchanges and indexes adding to already deep losses.

Friday's session opened with stocks dropping precipitously, with the Nasdaq briefly falling below 1400 and the Dow Jones threatening to dip below 8000. After a late-morning rally fizzled, stocks staggered to the closing bell, with a modest surge in the final hour cutting some of the day's losses.

The Dow ended Friday down 140.4, or 1.7%, to 8236, while the Nasdaq lost 47.8, or 3.3%, to finish at 1423. The S&P fell 20.2, or 2.1%, to 964, and internet.com's Internet Stock Index, or ISDEX, tumbled 5 points to 113.

Then there are the weekly numbers. The Dow's loss of 14.3% this week was its largest since a week in 1933, when it fell 15.5%. The Nasdaq finished down 16.0% for the week, while the S&P tumbled 11.7%. The ISDEX lost 21.5% this week.

Worse, with huge layoffs being announced across numerous industries, with companies freezing marketing and spending campaigns, and with job and security concerns plaguing consumers, there are no catalysts -- other than lower share prices -- enticing buyers to re-enter the market. Even Monday's half-point interest rate cut by the Fed failed to dent the week's gloom, as fear and uncertainty continue to grip investors.

On Friday, data storage giant EMC announced it would lay off more than 2,000 people, or 10% of its workforce, and that it expects to post a loss in the third quarter because of a slowdown in corporate spending. EMC shares fell 13.2% to $10.95.

Though handheld device maker Palm announced Q1 results on Thursday that met lowered expectations, shares were punished on Friday because company officials also announced it had canceled plans to unveil a wireless computer later this year. PALM fell 17.7% to $1.77.

Several other tech leaders on Friday saw shares continue to lose ground amid heavy trading, including chipmaker Intel , down 6.6% to $19.30; server vendor Sun Microsystems , down 6.0% to $7.96; and networking equipment maker Cisco Systems , which fell 6.1% to $12.09.

There will be no technical analysis today. For earnings reports, visit our earnings calendar at http://www.wsrn.com/apps/earnings/internet.xpl and reported earnings at http://www.wsrn.com/apps/earnings/ireported.xpl. For after hours quotes and news, visit our after hours trading site at http://www.afterhourstrading.com.

Special report: For a free introduction to technical chart patterns and an overview of last year's action in the stock market, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.