Sub-prime mortgage worries sent stocks skidding once again on Tuesday, and an outlook from Texas Instrumentsthat wasn’t quite as bullish as investors were hoping for weighed on the chip sector.
There wasn’t a lot of good news on the day. Rising mortgage delinquencies and foreclosures added to a looming crisis in the sub-prime mortgage market, and a rising Yen stoked Japanese repatriation fears. Weaker than expected U.S. retail fears renewed slowdown worries, and even solid results from Goldman Sachsfailed to appease investors.
TI lost 2.6% after reaffirming guidance for the current quarter, but the company’s lack of formal guidance for the second quarter left open the possibility that it could disappoint when it reports full results next month.
Qualcomm, J2 Globaland Technitrolgained after raising guidance, while Network Applianceand Sabafell on their outlook.
Infocrossingand Ixiafell on their earnings reports.
Wireless Facilitiesfell after delaying its annual report while it resolve stock option issues.
Marvellshed 5% on a UBS downgrade.
The Nasdaq tumbled 51 to 2350, the S&P 500 lost 28 to 1377, and the Dow plunged 242 to 12,075. Volume rose to 3.49 billion shares on the NYSE, and 2.27 billion on the Nasdaq. Declining issues led by a 27-6 margin on the NYSE, and 25-5 on the Nasdaq. Downside volume was 94% on the NYSE, and 88% on the Nasdaq. New highs-new lows were 89-77 on the NYSE, and 65-148 on the Nasdaq.