Accenture’s $10 billion Homeland Security contract could be in trouble.
The House Appropriations Committee voted 35-16 Wednesday to deny the huge federal IT contract to Accenture because the company is headquartered in Bermuda. Accenture won the contract over rivals Lockheed Martin and Computer Sciences
.
The spending bill still has to go through both houses of Congress and be signed by the president, but it’s not a promising start for Accenture. And it just might be the start of a move against companies that move their headquarters offshore.
Stocks fell Wednesday on fear of rising interest rates.
The Nasdaq lost 32 to 1990, the S&P 500 dropped 10 to 1131, and the Dow fell 64 to 10,368. Volume rose to 1.27 billion shares on the NYSE, and 1.53 billion on the Nasdaq. Decliners led 24-8 on the NYSE, and 22-8 on the Nasdaq. Downside volume was 78% on the NYSE, and 82% on the Nasdaq. New highs-new lows were 89-18 on the NYSE, and 64-30 on the Nasdaq.
After the close, Net2Phone beat estimates.
During the day, OmniVision plunged 30% after the company revealed accounting concerns.
AT&T fell and SBC
, BellSouth
and Verizon
rose after the federal government declined to appeal a court ruling that struck down the FCC’s local telephone network access rules.
Remec gained 1% after beating estimates.
Business Objects and Microstrategy
fell on a patent dispute ruling.
8X8 gained 6% on a VoIP deal with Level 3
.
Ameritrade lost 7% on a warning.
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