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Tech troubles pull Nasdaq to 2002 low
©Associated Press NEW YORK -- Warnings from Apple, Advanced Micro Devices and Ciena sparked a technology sell-off Wednesday, sending the Nasdaq composite index to a new low for the year as Wall Street grew more pessimistic about the timing of a business turnaround. The Dow Jones industrials tumbled more than 140 points. The downward momentum was accelerated by the second suicide bombing in Israel in as many days. Analysts said the crisis gave investors already skeptical about second-quarter earnings another reason to stay away. The Dow closed down 144.55, or 1.5 percent, at 9,561.57, wiping out more than half its 231-point gain the first two days of the week. It was the Dow's fifth-triple digit move in seven sessions. The technology-focused Nasdaq slid 46.13, or 3 percent, to 1,496.83. The last time the Nasdaq closed lower was Oct. 2, when it stood at 1,492.33. The Standard & Poor's 500 index dropped 17.15, or 1.7 percent, to 1,019.99. "It is looking like revenues for the second quarter will be a bit lighter than expected," said Christopher Wolfe, equity market strategist for J.P. Morgan Private Bank. "That's not making investors too eager to buy." Apple Computer tumbled $3.03, or 15.0 percent, to $17.12 after saying revenues and profits would be lower than predicted because of soft demand for its products. A similar warning, as well as prediction of a substantial operating loss, sent Advanced Micro Devices down $1.60, or 15.5 percent, to $8.70. Ciena fell 44 cents to $3.96 after the company said lower third-quarter revenue was possible because of the difficult telecom environment. The selling spread to other technology stocks as well. The news was the latest reminder that a much anticipated turnaround in technology -- and the broader market -- might not happen, or at least might be much less robust than hoped. Stocks have been falling all month on a mix of earnings and profit warnings from companies ranging from Intel to Abbott Laboratories. Although there have been occasional bursts of buying, stocks have failed to overcome the mostly negative bias that has been weighing on them for weeks. "Investors have been unsettled by all of the negative news," said Joseph V. Battipaglia, chief investment officer at Ryan, Beck & Co. "They're beginning to worry about whether the economy has durability for the rest of the year."
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From the Times Business report
From the AP
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