This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Tech Stocks Tumble

Updated from 4:13 p.m. EST

Stocks plunged anew Thursday before mounting a late rally that erased the worst of the blue-chip losses and cut tech shares' declines almost in half.

The Dow Jones Industrial Average ended down 33.73 points, or 0.25%, at 13,266.29 -- nearly 200 points above its session low. The S&P 500 also rebounded from session lows, ending off by 0.85 point, or 0.06%, to 1474.77.

The Nasdaq Composite was the hardest hit, plunging by more than 90 points around midday. But by the finish it showed a loss of 52.76 points, or 1.92%, at 2696. Troubling comments from networking giant Cisco (CSCO - Get Report) played a large role in the weakness.

"All of this comeback occurred in the last hour of trading, and the only thing we could point to is some short-term covering," said Robert Pavlik, chief investment officer with Oaktree Asset Management. "There is still a more exaggerated weakness in technology. We recovered a lot as the selloff may have been overdone, but it's hard to really take anything positive away from this. We still need to see some stabilization in equities, the dollar, oil prices and financials."

Once again, the market was steered by continued concerns over economic growth, the weak dollar and the financial crisis.

Cisco dragged on tech stocks after the company said it had a quarterly fiscal first-quarter profit of 37 cents a share, which topped Wall Street's estimates by a penny. Although the company provided in-line guidance, investors grew jittery after the tech behemoth said it is feeling the effects of the credit crunch. Shares of Cisco dropped $3.12, or 9.5%, to $29.63.

Major tech names that have seen big run-ups in recent months were particularly under pressure. Oracle (ORCL) plummeted 7.9%, Research In Motion (RIMM) spiraled 6.4% lower, Apple (AAPL - Get Report) lost 5.8%, and Google (GOOG) slid 5.3%.

On the New York Stock Exchange, 4.74 billion shares changed hands, as falling stocks eked past advancers by a 9-to-8 margin. Volume on the Nasdaq reached 3.40 billion shares, with losers edging winners 8 to 7.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs