Thompson I-Watch just now:
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* Losses continued to mount as the session progressed, with the major
indices ending near session lows. The NASDAQ Composite chalked up a
6.3% loss to end at 1,923. The tech index sliced through the 2,000
level in the process of dropping to its lowest level since December of
1998. Oracle (ORCL), Cisco Systems (CSCO), Qualcom (QCOM), JDS
Uniphase (JDSU), Nextel (NXTL), and EMC (EMC) all hit 52-week lows.
The Dow Jones Industrial Average slumped 4.1% to 10,208, as all 30
Dow components closed in negative territory. Market internals were
atrocious, with 31 NASDAQ stocks falling for every 7 that advanced,
while down volume beat up volume by a 20:1 margin. On the NYSE, 7
issues gained ground for every 24 stocks that fell and down volume beat
up volume by an 11:1 margin. Earnings fears remain the predominant
concern. According to First Call/Thomson Financial "the pace of
earnings pre-announcements has accelerated into a full gallop," adding
that "pre-announcements are running 57% ahead of the record setting
pace of 4Q00. Warnings from the tech sector are 112% ahead."
* Institutional Money Flows:
In the large cap tech arena, EMC lost $4.10 to $30.25, AOL slid $3.60
to $39.27, IBM eased $3.80 to $3.80 to $95.49, MSFT toppled $4 3/4 to
$51 5/16, QCOM shed $3 7/8 to $48 1/16.
Citing mounting evidence that the US economic slowdown has spread to
Europe and Asia, Salomon Smith Barney reduced earnings estimates and
price targets on a number of fiber optic issues, pressuring the group.
JDSU plunged $3 1/8 to $22 7/8, GLW gave up $3.58 to $23.43, CIEN
declined $$11 13/16 to $53 5/16, and EXTR slid $2.41 to $16.40. |
