Tech stocks fell Thursday after Goldman Sachs and Fed Chairman Alan Greenspan raised concerns about the pace of corporate investment.
A Goldman Sachs IT Spending survey taken in mid-April cast doubt on IT spending intentions for the remainder of the year, and Greenspan told a banking conference that an “awful lot” of investment has been put on hold.
The reports were the latest to question the pace of the technology spending and corporate rebound, and coupled with another week of high unemployment claims, sent stocks to their second straight day of losses.
The Nasdaq fell 17 to 1489, the S&P 500 lost 9 to 920, and the Dow declined 69 to 8491. Volume declined to 1.32 billion shares on the NYSE, and 1.61 billion on the Nasdaq. Decliners led 18-14 on the NYSE, and 18-12 on the Nasdaq. Downside volume was 73% on the NYSE, and 81% on the Nasdaq. New highs-new lows were 186-3 on the NYSE, and 136-13 on the Nasdaq.
After the close, NVIDIA beat earnings estimates but came in light on revenues.
During the day, SBC gave DSL another boost when the Baby Bell announced plans to spend $300-$500 million to expand its coverage area.
EDS lost 3.3% on a warning and concerns over a Navy contract.
EarthLink’s anti-spam crusade hit a roadblock with a patent infringement complaint.
Level 3 slipped 2% despite an Internet2 fiber win.
iVillage surged 10.7% on signs of a turnaround.
Qwest fell 2.4% on a $6.5 million FCC settlement.
And Microsoft slipped 1% on yet another security flaw.
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