Downgrades to Apple
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
During the day, MCI
rose after an unusual maneuver by Verizon
to win its takeover battle with Qwest
jumped 10% on a UK contract win.
climbed 5% after the company raised guidance.
tumbled on a “going concern” qualification from its auditors.