Tuesday was a day for selling on the news in the stock market.
Texas Instruments lost 3% despite raising guidance after the close on Monday. An early gap up turned out to be the high for the day, as traders sold the stock from the open.
HP lost 2% despite an upbeat analyst meeting. Company comments that IT spending remains muted weighed on the stock.
And the broad market fell despite the Federal Reserve’s promise to keep interest rates low for a “considerable period.” The reason? The Fed said that the risk between deflation and inflation are now equal, the first hint that the central bank may eventually raise interest rates. A warning from banking giant Washington Mutual also weighed on stocks, and the Dow flirted with – but could not hold – the 10,000 level.
The Nasdaq fell 40 to 1908, the S&P 500 lost 9 to 1060, and the Dow declined 41 to 9923. Volume rose to 1.41 billion shares on the NYSE, and 1.82 billion on the Nasdaq. Decliners led 19-12 on the NYSE, and 22-9 on the Nasdaq. Downside volume was 71% on the NYSE, and 78% on the Nasdaq. New highs-new lows were 342-7 on the NYSE, and 168-17 on the Nasdaq.
After the close, Cymer reaffirmed guidance, and Photronics
missed estimates.
During the day, Cisco fell 4% ahead of its analyst meeting. CEO John Chambers will speak at 11 a.m. ET tomorrow.
The IPO of Chinese online travel firm Ctrip.com received a rousing welcome, soaring 10 points from its $24 opening price.
Akamai lost 6% on disappointing guidance.
Earthlink climbed 2% and Valueclick
surged 8% after reaffirming guidance.
InterActiveCorp lost 3% after losing US Airways’ business at Expedia.
Time Warner Cable finished unchanged on plans to enter the VoIP market.
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