Everybody loves a winner? Sure, so they can sell them a day later. That was the story today, as investors sold off many of the tech stocks that soared in Friday's brief rally.
Overall, the tech indices ended the day down, led by the
Philadelphia Stock Exchange Computer Box Maker Index
, which retreated 2.4%.
, a traditional tech leader that closed a strong 18.3% higher Friday, helped bring down computer makers today, closing down $1.56, or 4.9%, to $30.31.
, which rose 6.9% Friday after losing 37.6% during the first three weeks of the month, closed down 4.8%
good retailing news from
TheStreet.com E-commerce Index
dropped 1.9%. Yahoo's announcement of nearly doubled online e-commerce helped it close up $1.63, or 5.5%, to $31.19. But other e-tailers weren't aided.
, which lost 16% Friday after a hacker sneaked into its computer systems, lost another 19% in trading today. Troubled toy e-tailer
also fell, ending the day down 14.3%.
Enterprise software makers, including some of Friday's biggest winners, lost some of their gains today.
, which rose 19.4% Friday, dropped $2.69, or 3.7%, to $69.56.
, which rose 16.4% Friday, despite losing a deal to rival
, dropped 4% today.
Business-to-business infrastructure company
closed down today after announcing a much wider than expected loss for the fourth quarter. eXcelon said the shrinking information technology budgets and weak dot-com environment would cause it to lose between 23 and 26 cents a share, instead of the 17 cents a share that had been estimated.
eXceleon closed down 44 cents, or 14%, to $2.69.
Storage stocks, which have held values better than many tech stocks, weren't immune to today's wasting away.
, which has managed to
25.7% since the beginning of November and rose 24.3% Friday, closed slightly down 25 cents, or 0.3%, to $84.81. Storage heavyweight
, which gained 12.8% Friday, lost 4.3% today.
, up 23.9% Friday, fell 4.8% today.
Contract electronic manufacturers were bucking the profit-taking trend. Industry leader
, which closed Friday up 4.3%, ended today up 70 cents, or 2.2%, to $32.99. Solectron's earnings report, which just edged past expectations last week, pointed out a trend that in tougher times many of its customers tend to outsource more, not less.
Fellow contract manufacturer
ended the day up 0.8%, and
was up 0.6%., while
was up 0.2% and
finished down 2.2%.
3:02 p.m.: Lucent Hurts but Yahoo! Helps Peers
Friday's warm and fuzzy feelings about the
Nasdaq are dissipating in the clear-eyed realization that earnings problems and the economic slowdown are right outside the door.
Wireless transmitter maker
warned today that its fourth-quarter revenues would be below expectations. Netro said order changes by
, its largest customer, were largely responsible for the decline.
Lucent, the telecom equipment maker, has been missing earnings left and right and its woes are spreading to others.
Dain Rauscher Wessels
today lowered its rating on Netro to buy from strong buy. And
lowered its earnings expectations for the quarter and for the 2001 fiscal year. Can you say goodbye market cap? In recent trading, Netro was down $1.69, or 19.8%, to $6.81.
, another major Lucent supplier, was downgraded for the second time in two sessions. Today,
Deutsche Banc Alex. Brown
reduced its rating on JDS to buy from strong buy, saying there were signs of a possible inventory build-up by customers -- which did not affect merger partner
JDS Uniphase was lately off 1.4%, while SDL was off 1%. The companies last week said they expect to
complete their merger in January instead of the end of this month because of the time required to finish the regulatory approval process.
Lucent is having such a big impact because it
warned last Thursday that it will have significant losses in the current quarter and it announced a restructuring plan. That was the company's fifth warning this fiscal year alone.
Gains were but a brief burst
Friday's brief burst of glory for semiconductor stocks was short-lived, as investors today cashed in on gains and sold on concerns that semiconductors -- also known as chips -- might slump even more than anticipated. Chip stocks have been suffering along with slowing computer sales since they provide the brains that go inside the machines.
An industry note released today by
Salomon Smith Barney
analyst Jonathon Joseph said the industry is four months into a "rather classic cyclical downturn." Analysts have been discussing for some time whether the slowdown in semiconductor stocks was a relatively short-term inventory correction or a longer-lasting cyclical downturn similar to one that affected the sector in 1998. Joseph's note said that he expected shipments would hit a year-over-year decline by mid-year. And, he said, historical evidence does not suggest that last week was a bottom for semiconductor stocks.The
Philadelphia Stock Exchange Semiconductor Index
, known as the SOX, was trading down 1.9%. The volatile index had jumped 9.7% on Friday.
, which rose 21.5% on Friday, was trading down $8.56, or 9.1%, to $85.63. Other communications chip makers that also rose on Friday were falling today.
Applied Micro Circuits
, up 21.9% Friday, was down 1.7%.
, which closed 14% higher Friday, was down 8.6%.
The economy isn't slowing everywhere. Internet portal
this morning said its online shopping orders doubled this year compared to last. That's encouraging news for retailers and e-tailers that have been hit by disappointing holiday sales. Yahoo! was up $1.31 on the news. It had climbed more strongly on the news earlier today.
And since what's good for e-tailing is presumed good for mega site
, the giant e-tailer was rising on Yahoo's updraft. Amazon was up 7.6% in recent trading. Other e-tailers, however, didn't get the benefit.
, which put itself up for sale last week, was down 14.3% and
Barnes & Noble.com
was down 10.9%.
Last week, online ad company
announced that its acquisition of e-mail marketer
was off and a new company was in the picture. Today, we learn that NetCreations' new buyer is Italy's largest Internet Service Provider. NetCreations was up 1.4%.