Tech stocks slump on Intel warning
Technology stocks take a beating at midday as the market continues to react to warnings from bellwethers. The Nasdaq plunges 101.70 points, and the Dow drops 185.60 points.
The Nasdaq plunged 101.70 points to 2,067.03, and the Dow Jones industrial average dropped 185.60 points to 10,672.65.
Shares of eBay slumped $5 to $34.13 after Lehman Brothers analyst Holly Becker issued a pessimistic note about the company's future.
Supply chain software maker i2 Technologies 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 speculation that it could lead to a price war. i2 was off $2.31 to $19.13, Commerce One slipped $2.38 to $11.25, Ariba fell $1.75 to $11.88, and PurchasePro dropped $1.44 to $10.50.
Analysts worried that bad news from Intel could be a sign of weakness in overseas markets. The company lowered revenue estimates for the first quarter Thursday and announced it would trim 5,000 jobs. Intel fell $3.56 to $29.69. Rival Advanced Micro Devices dropped $2.25 to $23.75.
The Securities and Exchange Commission may be probing a sale of stock by Amazon.com CEO Jeff Bezos. The New York Times reported that the probe centers on stock sold by Bezos in early February just before a Wall Street firm released a negative research report on the company.
Among other leading tech issues, Cisco Systems dropped $2.19 to $20.63, and Microsoft was down $2.50 to $56.75. IBM fell $6.17 to $100.30, and Sun Microsystems lost $2.06 to $18.25.
Staff and Reuters contributed to this report.