Technology stocks gave back some of yesterday's gains Wednesday as the Nasdaq composite fell 93 points to 2,797.00. Blue chips were battered too as the Dow Jones industrial average lost 234 points to 10,665.13.
Apple Computer's (AAPL) profit warning combined with some negative comments about Yahoo! (YHOO) compelled investors to dump tech issues yet again.
"People are still very anxious about what these specific companies ... the core of technology companies, will say about prospects for 2001," said Ned Riley, chief investment strategist at State Street Global Advisors. "We will be living in a fragile sentiment environment until the CEOs and CFOs give full disclosure."
Apple shares plunged $2.69 to $14.31 after several analysts cut their estimates on the stock following its latest profit warning.
Fellow PC makers were roughed up too as Compaq (CPQ) lost $4.30 to $20.10 while Gateway (GTW) and Dell (DELL) closed off $1.95 and $2.25 a share, respectively.
Intel (INTC) shed $4.25 to $31.75. Advanced Micro Devices (AMD) lost $1.31 to $14.44 and IBM (IBM) closed off $6.63 to $96.75.
Integrated Silicon Solutions (Nasdaq: ISSI) gained $3.44 to $12.75 after raising its sales estimates for the current quarter.
Yahoo! (YHOO) tumbled $6.38 to $37.50 after Merrill Lynch analyst Henry Blodget issued some negative comments. America Online (AOL) gained 53 cents to $44.61 while Amazon.com (AMZN) and eBay (EBAY) closed down $1.75 and $3.19 a share, respectively. CMGI (CMGI) trimmed 75 cents to $11.56.
Terra Lycos (Nasdaq: TRLY), down 88 cents to $15 and Headhunter.net (Nasdaq: HHNT), up 69 cents to $7.81, agreed to integrate the online recruiter's content into the sites of the Lycos network.
Juniper Networks, Inc. (Nasdaq: JNPR) lost $15.69 to $140.31 on news that Ericsson (Nasdaq: ERICY), off 31 cents to $13.31, has sold about 10.4 million shares of its holdings in the company. The companies called the move a first step in their joint venture for the build out of wireless infrastructure.
Microsoft (MSFT) shares finished off $3.19 to $56.69. Oracle (ORCL) lost $1.31 to $30.19 and Sun Microsystems (SUNW) closed off $1.63 to $44.25.