AFTERTHEBELL - Tech shares plunge on Altera, Gateway warning
NEW YORK, Nov 29 (Reuters) - U.S. technology shares fell sharply in extended trading on Wednesday after two industry leaders, Altera Corp. <ALTR.O> and Gateway Inc. <GTW.N>, warned of slowing sales in the fourth quarter.
The warning by personal computer maker Gateway and semiconductor maker Altera confirmed investors' worst fears that the slowing U.S. economy is deeply hurting the market's former hi-tech high-fliers. As Gateway's dim outlook dragged its competitors down, makers of specialty semiconductors were sharply lower following the Altera warning.
The after-hours disappointment added to the regular session woes, when the technology-laden hit Nasdaq Composite Index <.IXIC> hit new year lows, to close down 28.05 points, or 1.03 percent, at 2,706.93.
In extended hours, volume was heavy, with more than 53 million Nasdaq shares trading. Nasdaq 100 December futures fell 45 to 2,485 after the bell.
"The one thing we can be assured of tomorrow is a down opening," said Paul Cox, manager of the Commerce Mid-Cap Fund at Commerce Bank.
"At some point in time, these things are going to get washed out, but I don't know when that is. Everyone's been calling for a bottom for the last four months," Cox said.
Shares of Gateway last traded on Instinet at $21-1/2, a drop of more than 27 percent from a regular close of $29.50; Altera tumbled more than 25 percent to $18-11/16, after closing at $25-15/16.
Dell Computer Corp. <DELL.O> last traded after-hours, at $19-3/8, its lowest level since June 1998, and down from a standard close of $21-13/16, and Compaq Computer <CPQ.N> slipped to $20-1/2, from a close of $22.70.
Intel Corp. <INTC.O> stock traded at $37-3/4, down from a regular close of $42-3/4.
Shares of Xilinx Inc. <XLNX.O>, Altera's chief rival in the market for programmable logic devices, or PLDs, used by manufacturers, fell $5-9/16, or 13 percent, to $37-3/8 from their regular Nasdaq close of $43.
The selling was not limited to the two PLD makers, though. Shares of five makers of communications chips tumbled, as well, with Vitesse Semiconductor Corp. <VTSS.O>, TranSwitch Corp. <TXCC.O>, PMC-Sierra Inc. <PMCS.O>, Applied Micro Circuits Corp. <AMCC.O> and Broadcom Corp. <BRCM.O> all falling hard after hours.
18:25 11-29-00 |
