Business & Finance
News
4/6/2004
06:24 PM
Connect Directly
RSS
E-Mail
50%
50%

Tech Stocks: Nokia News Triggers Selling Spurt

The cell-phone company said its earnings will be at the lower end of expectations, triggering some selling of technology issues.

Wall Street continued buying blue chips on Tuesday, sparked by investors' bullish sentiments for upcoming earnings reports. But an earnings warning from Nokia triggered a rash of selling in technology issues.

Nokia's warning that its earnings would be at the lower end of its expectations cast a shadow over the Nasdaq and the InformationWeek 100. The Finnish cell-phone maker blamed its performance on having underestimated customer demand for less-expensive cell phones, and its stock price fell $3.94, or 18.6%, to $17.21.

Yahoo also fell, dropping $1.22 to $48.77, after Schwab Soundview Capital Markets downgraded the Internet company to "neutral" from "buy." Yahoo is scheduled to announce its first-quarter results after Wednesday's session.

Our InformationWeek 100 fell 5.68, or 1.7%%, to close at 337.70, while the Nasdaq fell 19.22 points, or 0.9%, to close at 2,059.90. The Nasdaq 100 tracking stock fell 4 cents, or 1.1%, to end at $37.04 on lower-than-average volume of 92 million shares.

"What we're seeing here, particularly on the Nasdaq, is reaction to the Nokia announcement," Scott Wren, equity strategist for A.G. Edwards & Sons, told The Associated Press. "I tend to think this isn't that big a deal, though. We still have some potential upside surprises in earnings going forward."

Meanwhile, large-cap stocks drifted upward during an afternoon rally, apparently lifted by investor optimism about the economy and corporate earnings, which are expected to be above average.

The Dow industrials rose 12.44, or 0.1%, to close at 10,570.81, while the S&P 500 fell 2.41, or 0.2%, to end the day at 1,148.16.

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - July 22, 2014
Sophisticated attacks demand real-time risk management and continuous monitoring. Here's how federal agencies are meeting that challenge.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
A UBM Tech Radio episode on the changing economics of Flash storage used in data tiering -- sponsored by Dell.
Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.