Technology stocks remained under pressure Monday for a second day following Microsoft’s disappointing results.
Techs lagged blue chips for much of the day and were clinging to the flatline when CNBC reported that Fed Chairman Ben Bernanke said the market misinterpreted his testimony last week that the Fed may pause in its long rate-hike campaign.
The news sent stocks and bonds tumbling and the Nasdaq to a second day of steep losses.
Microsoft, meanwhile, regained little of Friday’s 11% drubbing, as claims by Google that Microsoft is using its browser to boost its MSN service kept a lid on the stock, as tension between the two technology giants escalated with Microsoft’s plans to spend an additional $2 billion to better compete against Google and other threats.
The Nasdaq fell 18 to 2304, the S&P 500 shed 5 to 1305, and the Dow lost 24 to 11,343. Volume declined to 2.36 billion shares on the NYSE, and 2.15 billion on the Nasdaq. Decliners led 17-14 on the NYSE, and 18-11 on the Nasdaq. Downside volume was 58% on the NYSE, and 63% on the Nasdaq. New highs-new lows were 230-122 on the NYSE, and 183-51 on the Nasdaq.
Research in Motion lost 4.7% on more patent concerns.
Nortel fell 2% on yet another restatement.
Level 3 gained 6% after acquiring privately held TelCove.
Comverse climbed 4% on changes at the top.
