Tech issues absorbed the brunt of a sell-off after Monday's big gains.
Profit-takers dominated Tuesday's trading as investors capitalized on Monday's big gains, and tech stocks absorbed the brunt of the sell-off. Losers included Identix, which fell 35 cents, or 6.7%, to close at $4.87. Compuware, Hyperion Solutions, RSA Security, and webMethods all fell more than 5%. Fair Isaac and Co. was the big winner among our InformationWeek 100 stocks, rising 7.1%, or $3.90, to finish at $58.90.
Our InformationWeek 100 fell 1.90%, or 6.58 points, to close at 340.63. The Nasdaq Composite Index also fell, dropping 1.8%, or 37.79 points, to close at 2,116.04. The Dow fell 0.8%, or 89.11 points, to close at 10,613.40, and the S&P 500 fell 1%, or 11.22 points, to close at 1,144.15.
The Nasdaq-100 tracking stock also ended lower, falling 74 cents, or 1.9%, to close at $37.85 on slightly higher-than-normal trading volume of 90 million shares.
At least one analyst saw Tuesday's activity as healthy. "We're still in a good environment, we're still in an upward trend," Todd Leone, managing director of equity trading at SG Cowen Securities, told The Associated Press. "I like to see us go down a little bit, actually, it's healthy. You don't want to see the market going in a straight line up."
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.