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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Sully- who wrote (37630)	6/8/2001 10:53:49 AM
From: stockman_scott	Respond to of 65232

Stocks Sink on Juniper News By Elizabeth Lazarowitz Friday June 8, 10:30 am Eastern Time <<NEW YORK (Reuters) - Stocks sagged in early morning trading on Friday after a lower revenue forecast from Juniper Networks' (NasdaqNM:JNPR - news) tempered optimism built up by computer chip giant Intel Corp.'s (NasdaqNM:INTC - news) benign sales outlook. At mid-morning, the New York Stock Exchange said it halted all trading of stocks because of a system problem and that trading would resume at 11:15 a.m. EDT. ``We're buffeted by all these cross-currents in tech,'' said Larry Rice, chief investment officer at Josephthal Lyon & Ross. Intel, the world's largest semiconductor maker, said after the close on Thursday that quarterly sales will be within its previous range of expectations, although at the low end, lifting hopes the worst is over for the battered chip industry. But networking equipment maker Juniper Networks (NasdaqNM:JNPR - news) dampened the early enthusiasm after it said it lowered its quarterly revenue estimates and would cut its work force by 8-9 percent because of the slowdown in the telecommunications and network service provider sectors. Traders may also be locking in profits after recent gains in the Nasdaq market made as they grew optimistic that the worst is behind the battered group, Rice said. ``Optimism is prevailing all over so this is probably time to take a few bucks off the table and prepare yourself for a better buying opportunity.'' The tech-packed Nasdaq Composite Index (.IXIC) led the way lower, falling 23.33 points, or 1.03 percent, to 2,240.67. The Dow Jones industrial average (.DJI) was down 20.66 points, or 0.19 percent, at 11,070.08. But technical problems at the New York Stock exchange delayed the start of trading in some stocks on Friday, including a handful of Dow members. The broader Standard & Poor's 500 Index (.SPX) was down 4.47 points, or 0.35 percent, at 1,272.49. Intel was the Nasdaq's most heavily traded share, and it followed the rest of the semiconductor sector lower despite early optimism that the lack of nasty surprises in the report supported the case for a near-term rebound in the industry. Intel shares fell 41 cents to $30.73. ``No one expected Intel to come out with any bad news, and basically they didn't,'' said Peter Cardillo, director of research at Westfalia Investments. Juniper was second behind Intel in volume on the Nasdaq, falling more than 14 percent, down $6.73 at $39.90. Investors are holding onto any glimmer of hope for recovery in the corporate earnings outlook, but they are also ready to turn tail and lock in profits at the first sign of worse-than-anticipated results, traders said. With no key economic data due until next week, traders are watching out for more corporate news as the confession season -- when companies traditionally confess to shortfalls in results before actually reporting them -- gets under way. Investors have been anxiously searching for signs Corporate America is seeing the benefits of the Federal Reserve's aggressive interest-rate cuts. Lower interest rates cut the cost of borrowing, thus encouraging individuals and businesses to spend, which bolsters growth. The Fed has cut rates by 2-1/2 percentage points so far this year. After Thursday's close, computer network equipment maker 3Com Corp. (NasdaqNM:COMS - news) said it expects quarterly sales to fall short of previous guidance by about $100 million and plans to discontinue its line of consumer cable and DSL modems. 3Com slipped 10 cents to $5.56. Internet search software maker Verity Inc. (NasdaqNM:VRTY - news) said it has filed a lawsuit in a U.S. district court against software maker BroadVision Inc. (NasdaqNM:BVSN - news), saying BroadVision violated certain Verity copyrights and engaged in unfair competition, among other claims. Verity climbed $2.95 to $22.26, and BroadVision slipped 14 to $6.03.>>