Pricing pressures at Dell , a higher than expected rise in retail prices, and flagging consumer sentiment weighed on tech stocks Friday.
Given all that bad news, it’s a wonder the broader market was able to finish flat.
Dell lost 3% despite beating revenue estimates and raising guidance, as investors focused on rising component costs and pricing pressures from competitors that shaved gross margins from 18.3% a year ago to 18%.
A 14% sequential decline in Dell’s storage sales weighed on EMC , which co-brands storage systems with Dell. EMC fell 6% on the day.
The Nasdaq lost 21 to 1904, the S&P 500 slipped 1 to 1095, and the Dow added 2 to 10,012. Volume declined to 1.34 billion shares on the NYSE, and 1.53 billion on the Nasdaq. Advancers led 18-14 on the NYSE, while decliners led 20-10 on the Nasdaq. Downside volume was 52% on the NYSE, and 80% on the Nasdaq. New highs-new lows were 16-97 on the NYSE, and 31-76 on the Nasdaq.
Nortel lost 6% on news of a criminal investigation into the company’s accounting problems.
ADIC and BEA
plunged 20% after missing estimates, and China.com
fell 11% on its results.
Analog Devices edged higher after beating estimates and raising guidance.
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