War Fears Loom Over Market

Investors saw little reason to buy stocks on Monday with a Friday deadline looming for Iraq to comply with a UN disarmament resolution. Oracle and HP weighed on tech stocks.

The Nasdaq fell 40 to 1319, the S&P 500 lost 18 to 876, and the Dow fell 178 to 8358. With the bond market closed, volume fell to 1.1 billion shares on the NYSE, and 1.27 billion on the Nasdaq. Decliners led 22 to 8 on the NYSE, and 23 to 8 on the Nasdaq. Downside volume was 87% on the NYSE, and 89% on the Nasdaq. New highs-new lows were 17-52 on the NYSE, and 29-48 on the Nasdaq.

After the close, eSpeed topped estimates.

During the day, HP fell 11% on news of the departure of former Compaq chief Michael Capellas.

Oracle fell 5% on a downgrade despite reaffirming guidance.

Intel , off 4.5%, shed once-hot networking firm Shiva. Merrill Lynch said it expects Intel to cut chip prices and reiterated its Neutral rating on the stock.

IBM fared better than most, losing 0.4% after unveiling a new server and a new integrated circuit technique.

Microsoft , off 2.2%, continued to think small, this time on a Pocket PC deal with Samsung.

Juniper Networks and QLogic fell on negative analyst comments. QLGC gapped below its 200-day moving average at 40.40.

Nokia and Taiwan Semi were also hit by negative analyst comments.

AOL and VeriSign announced a partnership, while EarthLink took out ads critical of AOL.

Terra Lycos lost 5% as it sharpened its focus on pay services.

AT&T and Comcast moved a step closer to completing their merger.

Liquid Audio slipped after a merger fell through.

Openwave gained on a positive mention in Barron’s, while J2 Global fell 15% on valuation concerns.

Note: The market commentary has moved: The Technical Analysis is now a separate article. Please go directly to the InternetStockReport.com home page at:


News Around the Web