Tech stocks take hits as GDP data weigh on market
10:23 AM ET 7/30/10
SAN FRANCISCO (MarketWatch) - A weaker-than-expected gross-domestic-product report hit stocks across the board Friday, and the tech sector wasn't exempt from the decline as most tech leaders looked toward closing July out on a negative note.
The GDP figures said that the U.S. economy rose at an annualized rate of 2.4% in the second quarter. While the economy grew, it did so at a level below the 3.7% rate in the first quarter, and stoked fears that the economy may be entering an extended period of slow growth, or even contraction.
The Nasdaq Composite Index $COMPQ came back from its early lows but was still down 6 points at 2,245. The Philadelphia Semiconductor Index $SOX was down 1.4%.
After the GDP figures were released, nearly every bellwether tech stock fell into the red. Decliners included Intel Corp. (INTC), Hewlett-Packard Co. (HPQ), Apple Inc. (AAPL), Google Inc. (GOOG) and Cisco Systems Inc. (CSCO)
Microsoft Corp. (MSFT) fell 67 cents a share, or 2.6%, to $25.36. On Thursday, Chief Executive Steve Ballmer told industry analysts that Apple was a tougher competitor that Google, and that tablet computers with Microsoft's software are a top issue at the world's largest software company.
Oracle Corp. (ORCL) rose 3 cents a share to $23.75. Late Thursday, the U.S. Department of Justice accused Oracle with defrauding the U.S. government regarding a software contract with the General Services Administration from 1998 to 2006. See full story.
MEMC Electronic Materials Inc. (WFR) gave up $1.83 a share, or more than 16%, to $9.44. On Thursday, the maker of wafers for computer chips reported a increase in its second-quarter earnings, but its results still fell short of Wall Street analysts' forecasts.
Other notable losses came from Micron Technology Inc. (MU), which fell 44 cents a share, or almost 6%, to $7.33; Tellabs Inc. (TLAB), off 45 cents, or 6%, to $6.94, and RealNetworks Inc. (RNWK), down 18 cents, or 5%, at $3.41. |
