Lukewarm outlooks from Nokia and AOL hammered stocks on Tuesday, as did weak auto sales and news that Merrill Lynch is reducing its exposure to stocks.
The Nasdaq fell 35 to 1448, the S&P 500 lost 13 to 920, and the Dow dropped 119 to 8742. Volume declined to 1.46 billion shares on the NYSE, and 1.65 billion on the Nasdaq. Decliners led 20 to 12 on the NYSE, and 22 to 10 on the Nasdaq. Downside volume was 78% on the NYSE, and 83% on the Nasdaq. New highs-new lows were 35-15 on the NYSE, and 57-24 on the Nasdaq.
After the close, HP said it would achieve $3 billion in merger savings next year, a year ahead of schedule. Integrated Device
warned, and ADC Telecom
and JD Edwards
beat estimates.
During the day, AOL plunged 14% on a dismal outlook for online ad and e-commerce sales.
Nokia fell 4.6% on cautious guidance for 2003.
Cisco , off 3.6%, unveiled ambitious plans at its analyst meeting.
Microsoft and Sun
both fell as their dispute over Java headed to court.
Texas Instruments , off 4.2%, and Citrix Systems
, up 11%, both raised guidance.
Veritas and Siebel
edged higher on positive outlooks.
EMC fell 10% on competition from Hitachi.
Instinet finished down fractionally on news of a $100 million cost reduction plan.
Ciena fell 10% on new of a patent infringement suit by Nortel
.
Ericsson , off 4% on Nokia’s guidance, announced a wireless broadband deal in Colombia.
Red Hat , off 2%, introduced server and workstation products.
Avenue A , down 1%, announced the acquisition of i-Frontier.
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