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TECH STOCKS: Reality Meets Wishes With A Thud

Spoiled investors continued to take their frustrations out on the markets.
Spoiled investors continued to take their frustrations out on the markets Monday. Down, down, down, and down went our indexes when earnings news didn't meet inflated expectations--something they'd been warned about in the last couple weeks. Technology stocks bore the brunt of the selling, after printer maker Lexmark International Inc. warned of soggy profits and a Wall Street brokerage cut its investment rating on cell-phone maker Motorola Inc.

Leading the pack south was our InformationWeek 100, which fell 1.7%, or 4.29 points, to 248.29. A step behind was the Nasdaq, which fell 1.6%, or 27.02 points, to 1,681.48. The S&P 500 fell 1.5%, or 14.52 points, to 978.8, and the Dow Jones industrials fell 1%, or 91.46 points, to 9,096.69.

The Nasdaq-100 tracking stock, which some watch to see how tech shares are trading generally, closed the day down 1.3%, or 40 cents, at $30.88, on very heavy volume of 111.2 million shares--well above its average daily trading volume of 84 million shares. Even with its drop, the Nasdaq-100 (QQQ) is trading very near its 52-week high of $32.75 and light years of its 52-week low of $19.76.