Tech Stocks Slip Again

Tech stocks slipped again on Thursday on concern about PC sales and DRAM pricing, and a lackluster earnings report after the bell from Oracle didn’t help matters any.

The ISDEX fell 3 to 165, and the Nasdaq slipped 7 to 1854. The S&P 500 declined 1 to 1153, and the Dow rose 15 to 10,517. Volume declined to 1.21 billion shares on the NYSE, and 1.49 billion on the Nasdaq. Advancers led 17 to 13 on the NYSE, and 19 to 15 on the Nasdaq.

After the close, Adobe beat estimates and raised guidance, but Oracle slipped after missing revenue estimates and saying that tech spending will lag the overall economy.

During the day, Dell and Micron slipped on negative analyst comments about PC sales and DRAM pricing.

Verity slipped 2% despite topping estimates.

Juniper fell 11% on a downgrade.

Lucent continued to trade in the land of the unmarginables, closing for the second straight day below $5.

Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the story link at the top of the newsletter.

The Dow (first chart) spent its first day below that upper trendline in two weeks. However, the index continues to hang onto support in the 10,475 area. 10,425 is next support and then 10,300-10,380 is critical. 10,625 is very big resistance in that chart. Also, notice that +DI and -DI, buying and selling pressure, have recently hit levels usually associated with tops. Tomorrow should be an interesting day, with PPI, industrial production and consumer sentiment readings due out in the morning. Add to that a triple witching expiration, and it should make for a lively day. The S&P (second chart) continues to be a tale of two numbers: 1160 to the upside, and 1140 to the downside. The Nasdaq (third chart) closed below a rising channel line today, a negative. Support is 1850, 1830 and 1800 (1793), and 1880 and 1890-1910 are resistance. The SOX (fourth chart), the semiconductor index, pierced critical support at 580 again today; below that, 550 is the next strong support.




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