Market Wrap: Tech Stocks Stay Flat - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Market Wrap: Tech Stocks Stay Flat

U.S. blue-chip stocks plunged for a second day in a row Friday, as investors continued to be concerned about a resurgence of inflation and future increases in interest rates. Technology stocks, by contrast, ended flat, support by some better-than-expected earnings reports from companies in the sector.

The Dow Jones industrial average closed down 136.14 points, or 1.26%, to 10,655.15. Strong opening gains on the Nasdaq composite faded later in the day, leaving the technology-heavy index down 1.52 points at 2,638.49. The S&P 500 lost 12.31 to 1,328.72.

Economic data issued Friday, including a 3.1% surge in new home sales in June and a 0.7% climb in average personal income, added to fears that economic expansion and rising wages will cause the Federal Reserve Board to increase interest rates again.

One of the top performers among technology stocks today was BMC Software Inc. (BMCS), which jumped 5-1/2 to 53-7/8 after Morgan Stanley and CS First Boston said they raised their price targets and earnings estimates for the company. After yesterday's close, BMC announced results for its first quarter of fiscal 2000, ended June 30, 1999, which exceeded analysts' estimates. The company said that "very strong growth in both mainframe and distributed systems license revenues as well as strong growth in maintenance and services revenues yielded the eighth consecutive record-breaking quarter."

Total revenues for BMC's first quarter increased 43% to $400.7 million from $279.3 million in the same quarter of fiscal 1999. Net earnings and earnings per share, excluding certain one-time costs, increased 34% to $105.3 million and 31% to 42 cents, respectively.

There were 26 initial public offerings this week, including 10 on Friday alone. The most notable technology IPO today was Web-hosting firm Digex (DIGX), which sold 10 million shares at $17 each. The stock closed today at 22-5/16, up 5-5/16 on its first day of trading.

Other companies that made a debut Friday include N2H2 (NTWO), Aironet Wireless (AIRO), MIIX Group (MHU), Pac Softworks (PASW), Watchguard Technology (WGRD), and Accru Software (ACRU).

Computer hardware stocks were mostly lower today, with Hewlett-Packard (HWP) dropping 1-13/16 to 104-11/16; Dell Computer (DELL), 3/8 to 40-7/8; Sun Microsystems (SUNW), 1/4 to 67-7/8; and Compaq (CPQ), 3/4 to 24. On the other hand, IBM (IBM) and Apple Computer (AAPL) gained, with IBM rising 5/16 to 125-11/16 and Apple increasing 1-13/16 to 55-11/16.

Software giant Microsoft (MSFT) fell 1-1/8 to 85-13/16, after losing 3-1/16 yesterday. The stock of competitor Oracle (ORCL) remained flat at 38-1/16.

The stocks of ERP vendors and networking companies were mostly lower, in response to the overall drop in the markets. SAP (SAP) fell 11/16 to 31-11/16; PeopleSoft (PSFT), 5/16 to 13-5/8; and Lucent (LU), 3/8 to 65-1/16. By contrast, Nortel (NT) rose 5/16 to 88-5/8, and Cisco Systems (CSCO) added 3/8 to 62-1/8.

Internet stocks, which are more volatile than most other securities, dropped again today, with Yahoo (YHOO) losing 9/16 to 136 7/16; eBay (EBAY), 4-9/16 to 97-11/16; and America Online (AOL), 3-3/4 to 95.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Remote Work Tops SF, NYC for Most High-Paying Job Openings
Jessica Davis, Senior Editor, Enterprise Apps,  7/20/2021
Slideshows
Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Commentary
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
Register for InformationWeek Newsletters
Video
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
White Papers
Slideshows
Twitter Feed
Sponsored 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.
Sponsored Video
Flash Poll