Technology stocks stumbled again Wednesday as the Nasdaq composite shed 109 points to finish at 2,822.80. The Dow Jones industrial average picked up 26 points to end at 10,794.44.
Even though the presidential election appears to be resolved, investors weren’t ready to jump back into the technology sector, especially after another batch of profit warnings.
“We've been ignoring these downgrades, and today we're not ignoring them,” said Weatherly Securities chief investment strategist Barry Hyman. “Maybe the bigger picture for today is that the market's already priced in the Bush win, and you're seeing earnings taking center stage again.”
Compaq Computer (NYSE: CPQ) lost $2.67 to $18.10 after warning that it will miss analysts’ estimates in its fourth quarter.
Dell Computer (DELL) fell $1.27 to $20.44. Apple Computer (AAPL) trimmed 38 cents to $15 and Gateway (GTW) inched up 8 cents to $17.68.
Lucent Technologies (LU) rose $1.25 to $19.94 on unsubstantiated rumors that either Nokia (NYSE: NOK) or Alcatel (NYSE: ALA) might be interested in acquiring the struggling network-equipment maker. Cisco Systems (CSCO) shed $3.25 to $51.13 and Nortel Networks (NT) clipped $2.31 to finish at $36.44.
Razorfish (Nasdaq: RAZF) plunged $1.34 to $1.75 after analysts downgraded it following another fourth quarter warning, citing the firm's refusal to cut jobs and an impending cash crunch.
Engage (ENGA) fell 63 cents to $1.34 after it missed analysts’ reduced estimates in its latest quarter and said it would give further guidance after it sorts out a restructuring. Most analysts maintained their ratings while holding out for what is expected to be yet another negative pre-announcement.
Net2Phone (Nasdaq: NTOP) rose $1.94 to $11.69 despite mixed reviews from analysts after posting a smaller-than-expected loss in its first quarter.
Yahoo! (YHOO) slid 94 cents to $34.88 while America Online (AOL) and Amazon.com (AMZN) lost 20 cents and $2.13 a share, respectively. CMGI (CMGI), which reports earnings Thursday, finished off $2.25 to $9.63 and eBay (EBAY) dropped $1.69 to $39.25.
Metro One Telecommunications, Inc. (Nasdaq: MTON) jumped $4.56 to $23 after it said it would beat earnings estimates for its fourth quarter by as much as 8 cents a share.
Intel (INTC) shed $1 to $35.50. Advanced Micro Devices (AMD) chopped off 50 cents to $16.75 and IBM (IBM) closed off $2.63 to $91.25.
Oracle (ORCL), which reports earnings Thursday, lost $2.38 to $28.38 while Microsoft (MSFT) and Sun Microsystems (SUNW) closed off $1.13 and $2.13 a share, respectively.