It was a bad day for tech bellwethers at midday Monday as Microsoft led the Nasdaq lower amid concerns about slowing growth. The Nasdaq was off 200.64 to 3,442.26 and the Dow Jones industrial average was up 1.55 to 10,845.60.
Microsoft (Nasdaq: MSFT) was the topic of the day as bad news piled up around the software giant. Shares were down 12 7/16 to 66 1/2, or nearly 16 percent. Although antitrust concerns were a factor, Microsoft's gloomy outlook was the major reason investors were skittish. The company reported lower than expected third quarter sales and a host of analysts downgraded the stock.
Microsoft's malaise weighed on other technology bellwethers. The Nasdaq most active list was littered with losers.
Cisco Systems (Nasdaq: CSCO) was down 3 3/4 to 61 3/8, Oracle (Nasdaq: ORCL) was off 1 7/8 to 68 15/16, Intel (Nasdaq: INTC) slipped 4 1/16 to 111 5/16 and Dell Computer (Nasdaq: DELL) lost 2 7/8 to 47 1/16.
Even companies that usually gain at Microsoft's expense had a tough time. Be Inc. (Nasdaq: BEOS), which makes an alternative operating system, lost 3/4 to 7 1/8, and Sun Microsystems (Nasdaq: SUNW) fell 3 5/16 to 84 7/16. Corel (Nasdaq: CORL) lost 1 1/16 to 6 7/8, or 13 percent, after it revealed it's facing a cash crunch. Red Hat (Nasdaq: RHAT), which sells Linux software and services, eked out a small gain, up 5/8 to 26 7/8.
Among other companies in the news: