You could have made a case that much of the day's losses were minor in scope, particularly considering the caution influential Goldman Sachs analyst Abby Joseph Cohen showed toward the technology sector in balancing her portfolio, relieving it of its heavy reliance on technology. Then came the final hour of trading.
, off around 65 points with an hour to go in the session, ended down 124.56, or 2.5%, at 4834.00, as sellers capitulated at the last minute (or in the last 60 minutes, as it were).
TheStreet.com Internet Sector
index closed down 43.88, or 3.5%, at 1217.09, also falling apart in the last hour.
Losses were blamed on the change Cohen made to Goldman's aggressive portfolio. She shifted weighting from 70% equities to 65%, placing the 5% difference in cash and, for the first time in a decade, said she was no longer recommending an overweighted position in technology.
While the Nasdaq was lower throughout today's session, selling did not really pick up until the final hour of trading, when no signs of recovery were apparent.
Profit-taking was the order of the day.
, which had rallied on hopes for a partnership with
, closed down 16, or 6.7%, at 223 13/16.
Furthermore, business-to-business plays, which were among the hardest hit in the market's most recent setback, were again on the ropes.
closed down 14 13/16, or 8.4%, at 161 1/4;
ended down 8 1/4, or 4.5%, at 176 3/4; while
ended down 5 1/2, or 5%, at 104 1/16.
Among the top performing Net stocks was
, up 30 9/16, or 11%, at 307. The company introduced a superfast router and said that
would deploy the new router in its next-generation network.
Jim Herrick, managing director of trading with
Robert W. Baird
, indicated that the losses were little more than profit-taking after last week's run-ups were precipitated by Cohen's comments. Herrick said that although many investors expected quarter-end window dressing to prop up the market this week, the market has a tendency to go in the opposite direction of conventional wisdom. Herrick added that the market would probably try to rally tomorrow, but he expected to see selling into the rally.