A bad forecast from Sun hurt technology issues as the key market indexes posted their first losing month since last winter.
Stocks slumped Tuesday after unexpectedly weak reports on business activity in the Midwest and U.S. consumer confidence reignited concerns that the economic recovery may be at risk.
Tech stocks were hurt by a sour forecast from Sun Microsystems, which was viewed as a bad omen for the upcoming quarterly earnings season. Sun's share price fell 55 cents, or 14.3%, to $3.31 and topped the Nasdaq's most-active list after the company warned of a larger-than-expected loss in its first quarter.
The InformationWeek 100 fell 5.12 points, or 1.9%, to 271.43. The tech-heavy Nasdaq fell 37.77 points, or 2.1%, to 1,786.79, while the blue-chip Dow Jones industrial average fell 105.18 points, or 1.1%, to 9,275.06. The broader Standard & Poor's 500 fell 10.65 points, or 1.1%, to 995.93. The Nasdaq-100 tracking stock fell 72 cents, or 2.2%, to $32.42.
Two reports showing growth at Chicago-area businesses slowed sharply in September and U.S. consumer confidence plunged to the lowest level since the start of the Iraq war also put investors on guard.
The last day in September saw the end to a streak of monthly gains for the major market indexes. The Nasdaq fell about 1.3% for the month, snapping a seven-month winning streak. The S&P 500 fell 1.2% and the Dow fell about 1.5%--ending six-month winning streaks for both.
But for the third quarter, the S&P 500 rose 2.2%, the Dow rose 3.2%, and the Nasdaq rose 10.1%.
Sun's rivals followed its downward trend. Hewlett-Packard fell 26 cents to $19.36, and IBM fell $1.12 to $88.33; both weighed on the Dow average. Dell, another Sun competitor, fell 81 cents to $33.42.
How Enterprises Are Attacking the IT Security EnterpriseTo learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Infographic: The State of DevOps in 2017Is DevOps helping organizations reduce costs and time-to-market for software releases? What's getting in the way of DevOps adoption? Find out in this InformationWeek and Interop ITX infographic on the state of DevOps in 2017.
Digital Transformation Myths & TruthsTransformation is on every IT organization's to-do list, but effectively transforming IT means a major shift in technology as well as business models and culture. In this IT Trend Report, we examine some of the misconceptions of digital transformation and look at steps you can take to succeed technically and culturally.