Nasdaq slides on profit concerns

The index drops more than 3 percent on concern about the upcoming earnings parade as news about several tech companies makes investors nervous.

2 min read
The Nasdaq fell more than 3 percent Tuesday on concern about the upcoming earnings parade as news about Motorola, Compaq Computer, Corning and Alcatel made investors nervous.

The Nasdaq composite index slid 63.92 points to 1,962.79, and the Dow Jones industrial average dropped 123.76 points to 10,175.64.

Corning shares fell 98 cents to $14.12. The maker of optical network parts and fiber on Monday said it would lay off another 1,000 people and record a $5.1 billion charge in the second quarter to cover inventory write-offs and reflect the reduced value of acquisitions made last year.

Motorola rose 13 cents to $15.50 ahead of its second-quarter report Wednesday, despite what skittish analysts have said about the wireless handset maker's results. One analyst predicted the company will miss Wall Street's estimates, and others said they believe it will lower projections for the full year.

Alcatel also announced job cuts Monday, and shares dropped 55 cents to $15.70. The French telecommunications-equipment maker plans to slash 2,500 jobs in the United States and close a manufacturing facility in Raleigh, N.C.

Compaq fell 44 cents to $13.76 after UBS Warburg analyst Don Young lowered estimates for the PC company's second quarter.

CMGI appointed George McMillan, a former Bertelsmann executive, as chief financial officer. Shares in the Internet holding company were off 22 cents to $2.30.

TiVo, which provides video recording services for television viewers, was the Nasdaq's top-gaining stock, up $1.81, or 36 percent, to $6.88 after Monday night's announcement that it would meet estimates for the second quarter and full year.

Getty Images said it will lay off 300 workers, or nearly 8 percent of its employees, as second-quarter revenue is expected to fall below expectations. Shares in the photo and video archive company were off $7.24 to $17.32.

Among technology bellwethers, Microsoft fell $1.21 to $64.48, Oracle lost $1.32 to $17.59, Cisco Systems lost $1.25 to $16.20 and Intel dropped $1.11 to $27.79.

Amazon.com fell 20 cents to $15.61, AOL Time Warner dropped 51 cents to $50.18 and Yahoo was off 54 cents to $17.83.

Staff and Reuters contributed to this report.