Hewlett-Packard's disappointing fourth-quarter earnings cast a pall over the technology sector Monday as the Nasdaq composite fell 62 points to 2,966.61. The Dow Jones industrial average fell 86 points to 10,517.25.
Investors should feel fortunate the Nasdaq only lost 62 points after falling more than 170 points in early trading. Both indices bounced back in late trading before succumbing to some late selling.
"There is some liquidity seeking value and looking through the carnage that's been brought not only in tech but in non-tech areas," said Ned Riley, chief investment strategist with State Street Global Advisors.
Hewlett-Packard (NYSE: HWP) fell short of analyst estimates for the fourth quarter by a whopping 10 cents a share, sending its stock down $5 to 34.13.
Among other widely held PC stocks, Dell (DELL) added $1.13 to $24.13; Gateway (GTW) clipped 74 cents to $39; Apple Computer (AAPL) closed up 31 cents to $19.38 and Compaq Computer (CPQ) trimmed 45 cents to $25.25.
Intel (INTC) moved up $1.19 to $38.19. Advanced Micro Devices (AMD) gained $1.25 to $21.31 and IBM (IBM) closed up $4.38 to $97.38.
Western Multiplex Corp. (Nasdaq: WMUX) lost $3.75 to $9 after it said it will buy Adaptive Broadband Corp. (Nasdaq: ADAP). Adaptive shares closed off $1 to $11.81.
JNI Corp. (Nasdaq: JNIC) tumbled to $5.81 to $64.31after it issued statements to contest two articles which appeared on Friday. The company believes that the articles -- one from TheStreet.com, and one from Dow Jones Newswire -- had a negative effect on its stock price.
Microsoft (MSFT) lost 94 cents to $66.44. Oracle (ORCL) shed 69 cents to $24.75 and Sun Microsystems (SUNW) closed off $3.88 to $85.31.
Yahoo! (YHOO) lost $1.13 to $55.31. America Online (AOL) fell $1.43 to $49.07 while Amazon.com (AMZN) and eBay (EBAY) slid $2.25 and $3.19 a share, respectively. CMGI (CMGI) closed down $1.13 to $14.50 after it absorbed a downgrade from Adams Harkness.
CoolSavings Inc. (Nasdaq: CSAV) trimmed 13 cents to $1.13 after said it expects a fourth-quarter loss wider than Wall Street forecasts but sees profitability in the second half of 2001.
Entrust Technologies, Inc. (Nasdaq: ENTU) dipped 63 cents to $25.38 after announcing its CFO is leaving.