Techs down across the board
February 4, 2002: 4:54 p.m. ET
Tech stocks fall prey to broader market slump, Nasdaq down 2.9 percent.
NEW YORK (CNN/Money) - Technology stocks followed the declining crowd Monday as concerns about corporate accounting problems dragged down share prices.
The tech-heavy Nasdaq composite index dropped more than 2.9 percent, falling 55.71 to 1,855.53, with tech selling across the board.
The chip sector showed some resilience early on, with brokerage Goldman Sachs upgrading the semiconductor capital equipment sector and European regulators close to dropping an investigation into possible anti-competitive practices by Intel (INTC: down $0.69 to $33.98, Research, Estimates).
But chips eventually succumbed to downward pressure and the Philadelphia semiconductor index closed down 13.10 to 532.72.
In company news, Hewlett-Packard (HWP: up $0.04 to $22.04, Research, Estimates) barely held on to early gains, saying it expects first-quarter earnings to be "substantially above" Wall Street forecasts.
The maker of personal computers, high-end workstations, printers and other computer gear also raised its guidance on sales, saying it now expects revenue for its first quarter ended Jan. 31 to come in higher than the fourth quarter.
The most active stock on the Nasdaq was telecom company WorldCom (WCOM: down $1.48 to $8.13, Research, Estimates), which continued to come under pressure ahead of its Thursday earnings report where investors will be looking to see if the company can project revenue growth.
Telecommunications gear maker Ciena (CIEN: down $1.88 to $10.12, Research, Estimates) also fell after ABN Amro downgraded the company to "hold" from "add" and widened its 2002 loss estimate to 26 cents a share from a loss of 13 cents a share. The firm also cut its full-year 2003 earnings estimate for Ciena to 7 cents a share from 13 cents a share.
Priceline.com (PCLN: down $1.49 to $4.83, Research, Estimates) shares dropped more than 23 percent after posting an unexpected fourth-quarter profit but also warning on first-quarter results.
The company said it aims for first-quarter earnings per share excluding special items of between 0 and 2 cents, which puts it at or below the First Call EPS forecast of 2 cents. It also expects revenue of $260 million-to-$290 million in the first quarter, below the First Call forecast of $291 million.
Internet retailer Amazon.com (AMZN: down $1.20 to $12.53, Research, Estimates) fell after a Wall Street Journal report questioned whether the company has as many liquid assets to cover obligations as it has implied in its most recent statement.
Another retailer, Barnes & Noble.com (BNBN: down $0.26 to $1.65, Research, Estimates), announced it had promoted President Marie Toulantis to CEO.
The Goldman Sachs internet index dropped 6.52 to 92.39.
Microsoft (MSFT: down $1.54 to $61.12, Research, Estimates), one of the largest stocks on the Nasdaq, was also lower. On Sunday Microsoft Chairman Bill Gates, speaking at the World Economic Forum in New York, said he did not see a global economic recovery in 2002.
The Goldman Sachs software index fell 7.58, more than 4 percent, to 175.72.
Riverstone Networks (RSTN: down $1.73 to $13.99, Research, Estimates) plunged on its connections to Enterasys (ETS: down $6.60 to $4.20, Research, Estimates), which is being investigated by the Securities and Exchange Commission and may be having accounting troubles. Both Riverstone and Enterasys were spun off from Cabletron (CS: Research, Estimates).
Network equipment maker Entrasys Systems (ETS: down $6.60 to $4.20, Research, Estimates) tumbled after saying said it has delayed the release of its fourth-quarter and 2001 fiscal year financial results to review details of a $4 million sales contract. The company said it was investigating certain issues identified by management arising from the terms of the contract recorded by its Asia-Pacific operations.
money.cnn.com/2002/02/04/technology/techwrap/
February 4, 2002: 4:54 p.m. ET
Tech stocks fall prey to broader market slump, Nasdaq down 2.9 percent.
NEW YORK (CNN/Money) - Technology stocks followed the declining crowd Monday as concerns about corporate accounting problems dragged down share prices.
The tech-heavy Nasdaq composite index dropped more than 2.9 percent, falling 55.71 to 1,855.53, with tech selling across the board.
The chip sector showed some resilience early on, with brokerage Goldman Sachs upgrading the semiconductor capital equipment sector and European regulators close to dropping an investigation into possible anti-competitive practices by Intel (INTC: down $0.69 to $33.98, Research, Estimates).
But chips eventually succumbed to downward pressure and the Philadelphia semiconductor index closed down 13.10 to 532.72.
In company news, Hewlett-Packard (HWP: up $0.04 to $22.04, Research, Estimates) barely held on to early gains, saying it expects first-quarter earnings to be "substantially above" Wall Street forecasts.
The maker of personal computers, high-end workstations, printers and other computer gear also raised its guidance on sales, saying it now expects revenue for its first quarter ended Jan. 31 to come in higher than the fourth quarter.
The most active stock on the Nasdaq was telecom company WorldCom (WCOM: down $1.48 to $8.13, Research, Estimates), which continued to come under pressure ahead of its Thursday earnings report where investors will be looking to see if the company can project revenue growth.
Telecommunications gear maker Ciena (CIEN: down $1.88 to $10.12, Research, Estimates) also fell after ABN Amro downgraded the company to "hold" from "add" and widened its 2002 loss estimate to 26 cents a share from a loss of 13 cents a share. The firm also cut its full-year 2003 earnings estimate for Ciena to 7 cents a share from 13 cents a share.
Priceline.com (PCLN: down $1.49 to $4.83, Research, Estimates) shares dropped more than 23 percent after posting an unexpected fourth-quarter profit but also warning on first-quarter results.
The company said it aims for first-quarter earnings per share excluding special items of between 0 and 2 cents, which puts it at or below the First Call EPS forecast of 2 cents. It also expects revenue of $260 million-to-$290 million in the first quarter, below the First Call forecast of $291 million.
Internet retailer Amazon.com (AMZN: down $1.20 to $12.53, Research, Estimates) fell after a Wall Street Journal report questioned whether the company has as many liquid assets to cover obligations as it has implied in its most recent statement.
Another retailer, Barnes & Noble.com (BNBN: down $0.26 to $1.65, Research, Estimates), announced it had promoted President Marie Toulantis to CEO.
The Goldman Sachs internet index dropped 6.52 to 92.39.
Microsoft (MSFT: down $1.54 to $61.12, Research, Estimates), one of the largest stocks on the Nasdaq, was also lower. On Sunday Microsoft Chairman Bill Gates, speaking at the World Economic Forum in New York, said he did not see a global economic recovery in 2002.
The Goldman Sachs software index fell 7.58, more than 4 percent, to 175.72.
Riverstone Networks (RSTN: down $1.73 to $13.99, Research, Estimates) plunged on its connections to Enterasys (ETS: down $6.60 to $4.20, Research, Estimates), which is being investigated by the Securities and Exchange Commission and may be having accounting troubles. Both Riverstone and Enterasys were spun off from Cabletron (CS: Research, Estimates).
Network equipment maker Entrasys Systems (ETS: down $6.60 to $4.20, Research, Estimates) tumbled after saying said it has delayed the release of its fourth-quarter and 2001 fiscal year financial results to review details of a $4 million sales contract. The company said it was investigating certain issues identified by management arising from the terms of the contract recorded by its Asia-Pacific operations.
money.cnn.com/2002/02/04/technology/techwrap/
