Tech Wreck Sinks Stocks
10/11/07 - 04:42 PM EDT
Robert Holmes
Leading the Dow to the downside were Alcoa (AA Quote - Cramer on AA - Stock Picks), Boeing (BA Quote - Cramer on BA - Stock Picks), Intel (INTC Quote - Cramer on INTC - Stock Picks), and Caterpillar (CAT Quote - Cramer on CAT - Stock Picks), all finishing lower by 1.7% or more.
Breadth was decidedly negative Thursday. On the New York Stock Exchange 3.36 billion shares changed hands, as decliners topped advancers by a 2-to-1 margin. Volume on the Nasdaq reached 2.50 billion shares, with losers outpacing winners nearly 11 to 4. While the tech sector was the worst decliner, plenty of others finished in negative territory as well. The Amex Airline Index slid 1.5%, the S&P Retail Index lost 1.3%, and both the Dow Jones Transportation Average and the Nasdaq Biotechnology Index finished down 0.9%. Stocks were also hit by statements from European Central Bank governor Axel Weber. He said the bank may need to resume interest rate hikes and push them to a "restrictive" level, even though the ECB has left rates unchanged recently. Earlier in the session, Dow component Wal-Mart led gains after the retailer boosted its third-quarter profit guidance. The company posted a September comp sales increase of only 1.4%, a bit weaker than had been anticipated, and attributed the improved profit outlook to cost cuts. Shares of Wal-Mart rose $1.31, or 2.9%, to $46.90. Most other retailers reported lackluster results for September. Target (TGT Quote - Cramer on TGT - Stock Picks) posted a September comp sales rise of 1.2%, compared with expectations of a 2.2% gain. Target was off $1.15, or 1.8%, to end at $64.62.
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