Downgrades to Apple and IBM
kept stocks in check on Monday.
Shares of Apple dropped 4% after an analyst said the company’s success story might have an ending.
Mark Stahlman of Caris & Co. downgraded Apple to “average” from “above average,” citing rising competition and a new Microsoft operating system that could keep the “halo” effect from Apple’s iPod from translating into higher Mac sales. A Wall Street Journal article also cited potential competition from a joint Sony-Ericsson Walkman phone.
Apple reports quarterly results after the close on Wednesday. Analysts are looking for earnings of 24 cents a share, up from 7 cents in the year-ago quarter, on $3.17 billion sales.
IBM also lost ground Monday after Prudential Equity analyst Steven Fortuna said Big Blue could miss estimates because of server competition from Dell . IBM will report first-quarter earnings April 18.
The downgrades and a warning from Ford weighed on stocks Monday.
The Nasdaq lost 7 to 1992, the S&P 500 was unchanged at 1181, and the Dow slipped 12 to 10,448. Volume declined to 1.53 billion shares on the NYSE, and 1.39 billion on the Nasdaq. Decliners led 18-14 on the NYSE, and 19-10 on the Nasdaq. Downside volume was 58% on the NYSE, and 61% on the Nasdaq. New highs-new lows were 49-76 on the NYSE, and 25-104 on the Nasdaq.
After the close, BMC and Open Text
warned.
During the day, MCI rose after an unusual maneuver by Verizon
to win its takeover battle with Qwest
.
Micromuse jumped 10% on a UK contract win.
Hyperion climbed 5% after the company raised guidance.
Transmeta tumbled on a “going concern” qualification from its auditors.