A warning from EMCand a sector downgrade from Merrill Lynch dragged tech stocks lower on Monday.
EMC fell 7% after warning that its second-quarter results would come in below Wall Street forecasts.
Merrill, meanwhile, lowered its rating on the tech sector to “underweight,” a move the firm first considered last month, on liquidity, earnings and valuation concerns.
After the close, Lucentbecame the latest big tech name to warn, and Lucent and Alcatelsaid they see a workforce reduction of 9,000 as a result of their merger, expected to be completed by the end of the year.
Blue chips managed a small gain on the day, rebounding from Friday’s drubbing on a warning from 3M.
The Nasdaq fell 13 to 2116, the S&P 500 tacked on 2 to 1267, and the Dow added 12 to 11,103. Volume declined to 1.92 billion shares on the NYSE, and 1.62 billion on the Nasdaq. Advancers led 19-12 on the NYSE, while decliners led 16-13 on the Nasdaq. Upside volume was 55% on the NYSE, and 21% on the Nasdaq. New highs-new lows were 70-76 on the NYSE, and 47-118 on the Nasdaq.
Standard Microjumped 20% on its results.
Kronostumbled 15% on a warning.