This Day On The Street
Continue to site right-arrow
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

The Night Watch: Horror Show for Tech Stocks

Updated from 5:12 p.m. EDT

The extra session turned hideous, especially for technology stocks, compounding the pain the major averages inflicted on investors during regular trading.

The culprit was Intel (INTC - Get Report), which lowered its revenue guidance for the second quarter. The chipmaker now expects a top line of $6.2 billion to $6.5 billion, a range well below analysts' estimates.

Shares of Intel were falling 10% to $24.30 after the company offered its guidance.

Intel tried to soothe Wall Street by saying it still expects a stronger second half of the year, but no one cared. From the looks of it, the broader market and tech shares in particular could be in for a rough session Friday.

That's not what investors want to hear of course, especially after the regular session Thursday in which the Dow Jones Industrial Average closed with a loss of 172.16 points, or 1.8%, to 9624.64.

The Nasdaq fell 40.38 points, or 2.5%, to 1554.88, and the S&P 500 dropped 20.75 points, or 2%, to 1029.15.

The Instinet volume leader board after the close revealed widely held tech stocks in a tailspin. The Nasdaq 100 Unit Trust (QQQ - Get Report) was down 3% to $27.98. Microsoft (MSFT - Get Report) was down 3.2%, and Cisco (CSCO - Get Report) was falling 5.2%.

Sun Micro (SUNW) was lower by 4%. Dell (DELL) was losing 6%, and Hewlett-Packard (HPQ) was down 2%.

Overall, volume was heavy. In the first hour and 15 minutes of extended trading, more than 12 million shares changed hands among the 20 most active stocks on Instinet. Not surprisingly, Intel was the volume leader.

Anything in the chip and chip-equipment sectors was getting pummeled. Applied Materials (AMAT) was falling 8%, while KLA-Tencor (KLAC) and Novellus (NVLS) were each losing 7%.

Kulicke & Soffa (KLIC) was losing 8%, PMC Sierra (PMCS) was down 6% and Integrated Silicon (ISSI) was falling 7%.

Xilinx (XLNX) was down 6%, and Integrated Device Technology (IDTI) was tripping 7%.

Elsewhere, WorldCom (WCOM) and Nortel (NT) were dropping 4%. Palm (PALM) was off 5%, Brocade (BRCD) was losing 5%, and Oracle (ORCL) was giving back 3%.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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!
QQQ $105.10 -0.34%
CSCO $27.09 -1.30%
INTC $30.08 0.64%
MSFT $41.21 -0.60%
AAPL $124.24 0.70%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

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