If you place a lot of emphasis on trading volume, then the events of the past two days are not necessarily indicative of another wave of tech selling. But that's not to say that those events have been positive ones for longs.
Nasdaq Composite Index
was down 114.30, or 3.11%, at 3555.08, carrying Internet stocks lower as well.
TheStreet.com Internet Sector
index was down 23.76, or 2.75%, at 840.55.
John R. Boo, head of Nasdaq trading with
Ferris Baker Watts
, said traders have been whipped around so much over the past couple of months that many are not participating, which creates large swings in the market and makes it easier to push prices around.
"It's real money, but a lot of people are taking a cavalier attitude about it because it's taken place on negligible volume," Boo said.
Boo said the market is awaiting the next big economic number, which could be the
Consumer Price Index
, scheduled to be released next Tuesday and on the same day that the
meets. But, he added, near-term direction could be determined by
, which will report earnings after the close today. Cisco typically bests earnings numbers by a penny, but that may not be enough to stave off sellers this time around after
attacked the company's valuation in an article over the weekend. Cisco is
expected to earn 13 cents a share for its fiscal third quarter.
Boo said that coming out of earnings season, there is more uncertainty in the market, and while he was not sure whether the recent lows would be tested, he did say that his company's technicians were suggesting lows would be tested. He did not have a strong conviction about how the market would behave after the Fed makes its announcement next week, but he is leaning toward a post-Fed rally.
Although much of the sector was weaker today, there was a bright spot.
was up sharply on a
was looking to acquire
56% voting stake in Excite@Home.
The story indicates that Comcast has told AT&T that it would "flip'' the terms of a March agreement for AT&T to acquire 60 million Excite@Home shares owned by Comcast and Cox Communications Inc., for $48 each, or about $3 billion.
In recent trading, Excite@Home was up 3 3/4, or 21%, at 21 1/4, though that is far from the high of 28 it reached earlier.
put out a note saying that the comments were misinterpreted by the reporter and were taken out of context.