Weaker than expected earnings from Microsoftand Amazonadded 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, Yahooand 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.
Broadcombeat estimates, but fell 6% on inventory concerns. Gatewaybeat earnings estimates and announced a deal with Best Buy, but lost 4% on lower than expected revenues.
DoubleClickplunged 27% after missing estimates and warning.
Tekelecand Overstockwere two of the day’s standouts, rising on better than expected results and guidance.
But webMethods, VeriSign, Digital Insight, Foundry, Micromuse, CA, TriQuintand Hutchinsonfell on their earnings reports.