Weaker than expected earnings from Microsoft and Amazon
added to fears of an economic slowdown on Friday, sending the Nasdaq to fresh lows for the year.
Amazon plunged 13% after missing earnings and revenue estimates. Microsoft’s numbers were pretty solid, with higher than expected revenues, but investors sent the stock 3% lower after the company missed earnings estimates by a penny, as interest income declined as the company prepares for a huge cash distribution.
Following a string of disappointing results from the likes of Intel , Yahoo
and eBay
, investors saw little reason to hold stocks.
The Nasdaq tumbled 39 to 1949, the S&P 500 lost 10 to 1086, and the Dow fell 88 to 9962. Volume declined to 1.34 billion shares on the NYSE, and 1.7 billion on the Nasdaq. Decliners led 21-10 on the NYSE, and 22-8 on the Nasdaq. Downside volume was 78% on the NYSE, and 86% on the Nasdaq. New highs-new lows were 15-68 on the NYSE, and 15-197 on the Nasdaq.
Broadcom beat estimates, but fell 6% on inventory concerns. Gateway
beat earnings estimates and announced a deal with Best Buy
, but lost 4% on lower than expected revenues.
DoubleClick plunged 27% after missing estimates and warning.
Tekelec and Overstock
were two of the day’s standouts, rising on better than expected results and guidance.
But webMethods , VeriSign
, Digital Insight
, Foundry
, Micromuse
, CA
, TriQuint
and Hutchinson
fell on their earnings reports.
