Stocks Sell-off On Near-record Volume
Stocks fell sharply across the board on near-record volume on earnings warnings from Gateway and Altera, but the market recovered to close off its worst levels.
The ISDEX
Ariba
Cisco
Communications chip companies sold off on the warning from Altera
Juniper Networks
Tut Systems
Brocade Communications' better-than-expected earnings helped storage stocks. Brocade
Some technical comments on the market: Note: We are now including charts in the technical market commentary. If you can't get the charts via the e-mail newsletter version, try this link: http://www.afterhourstrading.com/column.html
The Nasdaq reached our downside target of 2530 today, duplicating its 41% descent from 5132-3026 from its second peak at 4289. A good point for a rally, and the high volume could make it good for more than that. We'll see what develops. If 2530 doesn't hold, the 1990 logarithmic trendline at 2300-2400 isn't too far from here.
fell 9 to 403, and the Nasdaq lost 108 to 2598, both new 52-week lows. The S&P 500 dropped 26 to 1314, and the Dow lost 214 to 10,414. Volume surged to 1.51 billion shares on the NYSE and 2.7 billion on the Nasdaq. Decliners led by 18 to 9 on the NYSE and 27 to 13 on the Nasdaq. A much weaker than expected report from the Chicago purchasing managers raised fears of a recession. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our after hours trading site.
gained 4 to 61 3/4 after trading as low as 51 3/4. Co-founder and CFO Edward Kinsey resigned and was replaced by Robert Calderoni from adhesive firm Avery Dennison
. Commerce One
dropped 2 3/16 to 28 13/16, closing beneath 29 support, but i2
rose 6 3/16 to 96 5/8.
dropped 3 1/4 to 48 on rumors that it was returning excess inventory to manufacturers, raising concerns that demand was slackening.
, which lost 1 15/16 to 24. Broadcom
gained 2 1/2 to 97 1/2, but PMC-Sierra
fell 11 1/4 to 92 1/4, and Vitesse
declined 6 1/16 to 43 1/8.
bucked the trend, rising 9 3/4 to 125 1/2 after announcing an alliance with Ericsson
to develop mobile Internet routing products.
dropped 3 9/16 to 7 1/8 on an earnings warning. Stratos Lightwave
slipped 7/8 to 15 7/8 despite beating earnings estimates.
surged 14 1/4 to 168, EMC
gained 1 3/16 to 74 3/8, Veritas
rose 9 9/16 to 97 9/16, and Emulex
gained 5 15/16 to 116 7/16.