Inflation, Earnings Take Toll on Techs | Internet News

Inflation, Earnings Take Toll on Techs

Written By
Paul Shread
Paul Shread
May 12, 2006
1 minute read


Weak earnings reports from a number of big-name technology companies finally took its toll on the stock market Thursday, and rising commodity and energy prices sent the broader market to its biggest one-day decline since January.

Disappointing results in recent weeks from the likes of Intel, Dell, Microsoftand Ciscohave kept the tech sector under pressure. On Thursday, techs led the broader market lower, losing 2% on the day.

Rising commodity and bond prices raised fears that the Federal Reserve may continue to raise interest rates, which could slow the economy — and earnings — more than investors are hoping for.

The Nasdaq tumbled 48 to 2272, the S&P 500 lost 17 to 1305, and the Dow fell 142 to 11,500. Volume rose to 2.53 billion shares on the NYSE, and 2.5 billion on the Nasdaq. Decliners led 25-7 on the NYSE, and 24-6 on the Nasdaq. Downside volume was 83% on the NYSE, and 88% on the Nasdaq. New highs-new lows were 191-140 on the NYSE, and 134-97 on the Nasdaq.

Applied Microfell 7% on news that it will be removed from the S&P 500.

Lam Researchfell 5% after American Technology Research downgraded the chip sector.

Affiliated Computerlost 4% after delaying its quarterly filing.

Comsysand Aeroflexrose on their results, while Autobytelfell on its results.

JDSUand Merixfell on convertible offerings.

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