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Tech Industry

MARKET CLOSE: Dow, Nasdaq absorb triple-digit losses

    Investors celebrated the one-year anniversary of Nasdaq 5,000 Friday by selling stocks as vigorously as they have for the past 12 months, sending the technology-laden index down 116 points to a close of 2,052.83.

    The Dow Jones industrial average suffered through a worse day, falling 214 points to finish at 10,643.97.

    For the week, the Dow gained 178 points while the Nasdaq clipped 65 points.

    Intel's (Nasdaq: INTC) profit warning and stronger-than-expected employment data combined to deliver a potent one-two punch to the midsection of a market that's already on its last leg.

    The Labor Department reported that the nation's employers created 135,000 jobs in February, well ahead of analysts' forecasts of about 75,000. Analysts said the report could keep the Federal Reserve Board from cutting interest rates later this month and prolonging any substantial recovery in the technology sector.

    "There is a concern we won't get the big rebound," said Donald Berdine, chief investment officer at Pittsburgh-based PNC Advisors. "We may not see 3,500 for years."

    Intel shares fell $3.81 to $29.44 after warning that its sales will fall well short of analyst estimates. Advanced Micro Devices (NYSE: AMD) lost $2.70 to $23.30, and IBM (NYSE: IBM) shed $7.18 to $99.29.

    Gateway (NYSE: GTW) dropped $1.41 to $15.85. Apple Computer (Nasdaq: AAPL) closed off 56 cents to $20.25, while Dell (Nasdaq: DELL) and Compaq (NYSE: CPQ) slid $2.75 and $2.76 a share, respectively.

    Shares of eBay (Nasdaq: EBAY) slumped $5.13 to $34 after Lehman Brothers analyst Holly Becker issued a pessimistic note about the company's future.

    America Online Time Warner (NYSE: AOL) trimmed $1.63 to $42.87. Yahoo (Nasdaq: YHOO) lost 68 cents to $17, and CMGI (Nasdaq: CMGI) clipped 22 cents to $4.09. Amazon.com (Nasdaq: AMZN) picked up 56 cents to $12.25.

    Supply-chain software maker i2 Technologies (Nasdaq: ITWO) announced plans to acquire RightWorks, a maker of procurement software, in a deal worth around $114 million. The news shook up the business-to-business marketplace with speculations that it could lead to a price war. i2 shares dropped $1.94 to $19.50. Commerce One (Nasdaq: CMRC) shed $2.63 to $11, while Ariba (Nasdaq: ARBA) and PurchasePro (Nasdaq: PPRO) lopped off $2.13 and $1.13 a share, respectively.

    Microsoft (Nasdaq: MSFT) lost $2.56 to $56.69. Oracle (Nasdaq: ORCL) dropped $1.13 to $16.38, and Sun Microsystems (Nasdaq: SUNW) closed off $2.88 to $17.44.

    ZDII staff and Reuters contributed to this roundup.


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