The economy has been recovering nicely for a year now, but the telecom equipment sector still appears to be struggling.
plunged 14% Thursday on a wider than expected loss and cost-cutting plans that don’t appear to be enough to return the company to profitability. ADC Telecom
lost 6% after narrowing its loss from a year ago.
The big news of the day for the sector was Tellabs’
$1.9 billion acquisition of Advanced Fibre
. The deal combines Tellabs’ strong ties to regional phone companies with Advanced Fibre’s cutting-edge products, in what some analysts viewed as a move for survival by both companies.
While there’s been some uptick in sales, it doesn’t appear to be enough to lift all boats just yet. Looks like the hangover from the roaring ’90s is still with us.
The market finished the day flat on weaker than expected manufacturing and jobless claim reports.
The Nasdaq slipped 1 to 1896, the S&P 500 added half a point to 1089, and the Dow was unchanged at to 9937. Volume fell to 1.21 billion shares on the NYSE, and 1.54 billion on the Nasdaq. Advancers led 19-13 on the NYSE, but decliners led 17-13 on the Nasdaq. Downside volume was 56% on the NYSE, and 58% on the Nasdaq. New highs-new lows were 11-51 on the NYSE, and 29-101 on the Nasdaq.
After the close, McData
missed revenue estimates and warned. Marvell
During the day, Intuit
fell 10% on a warning.
surged on their results, but Credence
slipped on its results.
Internet jeweler Blue Nile
received a warm welcome in its Wall Street debut, ending the day 13% above its opening price. Amazon.com
, which recently began selling jewelry, declined 2%.
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