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, HPsaid it would achieve $3 billion in merger savings next year, a year ahead of schedule. Integrated Devicewarned, and ADC Telecomand JD Edwardsbeat estimates.
During the day, AOLplunged 14% on a dismal outlook for online ad and e-commerce sales.
Nokiafell 4.6% on cautious guidance for 2003.
Cisco, off 3.6%, unveiled ambitious plans at its analyst meeting.
Microsoftand Sunboth fell as their dispute over Java headed to court.
Texas Instruments, off 4.2%, and Citrix Systems, up 11%, both raised guidance.
Veritasand Siebeledged higher on positive outlooks.
EMCfell 10% on competition from Hitachi.
Instinetfinished down fractionally on news of a $100 million cost reduction plan.
Cienafell 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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