HP Weighs on Stocks

News that HP CEO Mark Hurd may become embroiled in the company’s leak scandal sent HP shares 5% lower Thursday and set the tone for the broader market.

HP plans a news conference after the market close Friday to address the issue, which has already claimed chairwoman Patricia Dunn.

Hurd has been viewed as instrumental in the company’s turnaround, so Thursday was the first time the company’s stock took a hit in the spying scandal.

HP also reported late Thursday that the SEC is now looking into the matter.

The broader market tumbled on news that the Philadelphia Fed manufacturing survey turned negative in September for the first time since April 2003, raising slowdown fears.

Priceline rose 6.6% after raising guidance for the next two quarters.

Xyratex gained 4.7% on its results.

Riverbed soared 57% in its debut.

Yak surged 31% on a buyout offer.

Bookham lost 6% on a “going concern” note from its auditors.

Comtech slumped 7% on its results.

InfoSpace tumbled 22% on loss of business from one partner, while Westell lost 13% on loss of business with Verizon .

The Nasdaq fell 15 to 2237, the S&P 500 lost 7 to 1318, and the Dow fell 80 to 11,533. Volume rose to 2.63 billion shares on the NYSE, but declined to 2.05 billion on the Nasdaq. Decliners led 19-13 on the NYSE, and 19-10 on the Nasdaq. Downside volume was 62% on the NYSE, and 70% on the Nasdaq. New highs-new lows were 170-41 on the NYSE, and 129-80 on the Nasdaq.