Weakness in the wireless sector weighed on the Nasdaq Thursday, with Motorolafalling on a warning and Palmslumping on speculation that it won’t be acquired by Motorola.
Motorola shares lost more than 6% on the news, while Palm shares lost nearly 9% after traders interpreted Motorola’s lack of mention of the company as evidence that it won’t be acquiring Palm, rumors that had driven Palm shares a third higher in recent trading sessions.
After the close, Palm announced its own quarterly results, beating Wall Street estimates but issuing mixed guidance. The company also had no comment on merger speculation concerning Motorola or any other potential suitor. Still, the results were good enough for a 2% gain in late trading for Palm shares.
Also after the close, Jabilfell 5% on a warning.
Stocks were mixed during the day, as traders digested Wednesday’s massive gains and a decline in leading economic indicators and weekly jobless claims.
RF Microlost 5% on Motorola’s results, and Tesscodropped 10% on its outlook.
Oraclegained on an attack on rival SAP.
Nortelfell 6% on a $1 billion convertible debt offering.
Rackablesoared 12% on takeover speculation.
Intuitfell on its sales outlook.
RCMand FortuNetgained on their results.
The Nasdaq lost 4 to 2451, the S&P 500 slipped half a point to 1434, and the Dow rose 13 to 12,461. Volume declined to 3.13 billion shares on the NYSE, and 1.99 billion on the Nasdaq. Advancing issues led by a 16-15 margin on the NYSE, and 15-14 on the Nasdaq. Upside volume was 45% on the NYSE, and 39% on the Nasdaq. New highs-new lows were 220-16 on the NYSE, and 154-33 on the Nasdaq.