AMDsaid on Monday that it won’t meet Wall Street sales estimates this quarter, giving investors yet another reason to unload tech stocks.
The Nasdaq, already reeling from a 6% loss last week, shed another 1.2%, as U.S. stocks followed overseas markets lower on renewed fears of Japanese “carry trade” liquidation and the implosion of sub-prime lender New Century. A weaker than expected services sector report in the U.S. added to slowdown fears.
AMD CEO Hector Ruiz said AMD will miss Wall Street sales estimates of $1.66 billion for the current quarter because the company has had trouble supplying resellers. The company remains locked in a price war with Intel. AMD shares shed 1.6% on the day.
Appleshares added 1% on a Prudential upgrade.
Palmfell 10% on a JP Morgan downgrade despite reports that the company may be on the block.
Aeroflexand SafeNetrose on private equity buyouts.
The Nasdaq fell 27 to 2340, the S&P 500 lost 13 to 1374, and the Dow shed 63 to 12,050. Volume rose to 3.44 billion shares on the NYSE, but declined to 2.38 billion on the Nasdaq. Declining issues led by a 27-5 margin on the NYSE, and 25-5 on the Nasdaq. Downside volume was 91% on the NYSE, and 81% on the Nasdaq. New highs-new lows were 56-107 on the NYSE, and 42-182 on the Nasdaq.