Stocks Fall Again
Stocks plunged again on Monday, led lower by cautious comments from Cisco Systems and an earnings warning from Ericsson.
The ISDEX http://www.wsrn.com/apps/ISDEX/
Cisco
Optical and networking stocks were hit by negative comments downgrades by analysts. Ciena
eBay
Check Point
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 met its downside target of 1950 based on its break of a bear flag at 2200 on Thursday (first chart). The index's decline here is being halted by the lower trendline of what could be a falling wedge (second chart), with the lower line touching on the December and January lows; that makes 1944 or so pretty important support. The next strong support on the index isn't until around 1800, but the Nasdaq is due to turn up in the next day or two, and the last two down days look like potential exhaustion gaps, meaning sellers could be running out of steam. To the upside, the upper boundary of that falling wedge is around 2100, and next resistance around is 2252.
fell 14 to 234, and the Nasdaq dropped 73 to 1979, adding to its worst-ever bear market. The S&P 500 lost 31 to 1201, 20 points into bear market territory, and the Dow plunged 237 to 10,407. Volume rose to 507 million shares on the NYSE, but declined to 910 million on the Nasdaq. Decliners led 20 to 8 on the NYSE, and 27 to 6 on the Nasdaq. 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.
fell 1 1/2 to 19 1/4. After the close on Friday, CEO John Chambers said the company has no earnings visibility, a tactic that has helped the company avoid issuing an explicit earnings warning. Several analysts complied by lowering estimates on the company. Ericsson
plunged 2 1/16 to 6 5/16 on its own earnings warning.
, on of the highest flyers in the sector, plunged 7 1/2 to 57 1/2, but 6 points off its low. Juniper
lost 3 3/16 to 51 11/16. Corning
fell 2.86 to 24.15.
lost 5/8 to 33 3/8, as investor ignored an alliance with Microsoft
webMethods
, up 2 1/2 to 28 3/16, and i2
, up 1 5/8 to 21 1/8, announced an alliance. B2B stocks were strong in general. Ariba
climbed 3/4 to 12 1/4, and Commerce One
tacked on 61 cents to 11.61, as the Nasdaq began its three-week transition to decimal trading.
found buyers, up 7/16 to 67 3/16, 6 points off its low.