The Federal Reserve may be convinced that the economic slowdown is temporary, but technology investors appear to have some doubts about that view.
Cautious guidance from Cisco Systemsand warnings from National Semiand Kulicke and Soffasent the Nasdaq skidding to new lows for the year on Wednesday, just a day after stocks surged on upbeat comments from the Fed.
Stocks recovered to finish well off their worst levels of the day, but the Nasdaq still ended down 1.5%.
Investors will get another chance to gauge the health of the technology sector when Dellreports its results after the close on Thursday. Analysts expect the company to report earnings of 31 cents a share, up from 24 cents a year ago, on revenues of $11.72 billion. As for the company’s guidance, analysts are expecting earnings of 33 cents a share on revenues of $12.51 billion for the October quarter.
The Nasdaq tumbled 26 to 1782, the S&P 500 lost 3 to 1075, and the Dow slipped 6 to 9938. Volume rose to 1.41 billion shares on the NYSE, and 1.8 billion on the Nasdaq. Decliners led 18-14 on the NYSE, and 19-11 on the Nasdaq. Downside volume was 64% on the NYSE, and 79% on the Nasdaq. New highs-new lows were 21-88 on the NYSE, and 15-256 on the Nasdaq.
Netflixlost 6% on competition from Blockbuster.
Computer Sciencesfell 3% on mixed results, while Pomeroy Computeredged 2% higher after beating estimates.
Business Objectsand MicroStrategyfell on a legal dispute.
UTStarcomtumbled 14% after delaying its second-quarter filing.
Essexrose 9% on its results.
Primus Knowledgefinished unchanged despite a takeover offer from Art Technology.
DigitalNetclimbed 5% on a U.S. Justice Department contract win.
And Google’s IPO is back on track, with bidder registration set to close on Thursday.