When technology sells off as it has since the middle of yesterday up to the middle of today, investors are quick to ask whether the recent lows will be revisited. It doesn't seem likely anytime soon.
In recent trading, the
Nasdaq Composite Index
was off 128.53, or 3.4%, at 3656.92.
TheStreet.com Internet Sector
index was down 14.25, or 1.6%, at 856.81.
Patrick Davis, head of Nasdaq trading with
said that traders were likely looking for some type of excuse to take profits after the Nasdaq rallied by 13% from the 3513 low it made on April 27 to the 3982 high it made on Monday. Concerns over Novell's earnings warning and interest rate worries were providing the excuse, he said. The market faces an important economic report on Friday with the April employment figures, while the
meets on May 16.
Davis said that there was not as much talk about a retest of the recent lows as there was a couple of weeks ago because of the strength of the recent comeback. "Can they test the lows? Of course they can, but it feels to me like we won't get quite that low immediately," he said.
Davis said that the shakeout among Internet stocks has traders acting more careful about what stocks they are investing in.
"People are being a little more cautious and not just diving in with reckless abandon," he said. "They're being more selective and will continue to be more selective."
As usual, companies that had rallied hard on the way up, were seeing selling on the way down.
was down 15 1/8, or 13%, at 98 5/8 after posting quarterly
numbers last night. The software company posted a loss of 21 cents a share, much better than the 27-cent loss estimate from
First Call/Thomson Financial
. Note that the stock has traded in a range between 44 1/2 on April 17 and 119 7/16 on May 2. Happy trading.
Check Point Software
was down 10 2/32, or 6%, at 171 21/32 and
was down 8 27/32, or 8%, at 96 17/32.
On the upside,
was up 3 3/4, or 9%, at 44 5/16. Chat boards indicated that there were some rumors about a takeover, but there didn't appear to be much truth to them.