MIDDAY MARKETS: Apple depresses techs

2 min read

Techs felt Apple's pain at midday Friday; PC and other stocks tumbled after the computer maker's warning. The Nasdaq fell 57.19 to 3,721.13 and the Dow Jones industrial average shed 92.05 to 10,732.01.

The Inter@ctive Week @Net Index fell 4 to 513.44.

In economic news, Americans' incomes grew modestly in August but they spent heavily, pushing the rate of saving to its lowest level on record. The Commerce Department also said consumer spending rose 0.6 percent in August, keeping pace with July's increase. Personal income -- including wages, salaries, benefit payments and other sources of income -- gained 0.4 percent.

Apple Computer Corp.'s (Nasdaq: AAPL) fourth quarter profit warning sent the stock plunging 58 percent, or 35.56, to 26.44 Friday morning. Apple's freefall also dinged other PC makers, such as Dell (Nasdaq: DELL), down 2.88 to 30.56, and Compaq (NYSE: CPQ) down 0.65 to 27.60.

With its stock hovering around $1, theglobe.com (Nasdaq: TGLO), down 0.19 to 0.81, announced its latest troubles; the former poster child of dot-com mania said it will have sharper losses in the third quarter due to a slowdown in advertising spending, and will restructure its advertising sales department.

A third quarter warning and downgrades from analysts sent shares of Net Perceptions (Nasdaq: NETP), down 7.34 to 5.16, plummeting Friday.

One of the few bright spots on the Nasdaq was Maxtor (Nasdaq: MXTR), up 15 percent, or 1.31, to 10.19 after Business Week's "Inside Wall Street" column reported that a major computer data-storage company plans to bid $2.3 billion, or $20 per share, for the company.

Shares of memory and storage products maker Simple Technology Inc. (Nasdaq: STEC) fell 0.63 to to 10.38 in its public debut after pricing at $11 per share, in the middle of their $10 to $12 a share estimated price range.

Amazon (Nasdaq: AMZN) fell 0.31 to 39.69, AOL (NYSE: AOL) gained 0.35 to 53.94, and Yahoo! (Nasdaq: YHOO) fell 1.06 to 94.63.

Among other leading tech issues: Cisco (Nasdaq: CSCO) dropped 1.94 to 57.50, Intel (Nasdaq: INTC) fell 2.19 to 42.25, Microsoft (Nasdaq: MSFT) shed 1.81 to 59.50 and Oracle (Nasdaq: ORCL) lost 0.78 to 80.69.