Sure there's no such thing as global warming. Just ask New Yorkers. And the stock market has been hot one day, cold the next. Today, was a steamy day in New York, but a cool one for Wall Street.
After Friday's near 100-point gain, the
Nasdaq Composite Index
gave back all of its gains and then some, closing down 147.44, or 3.9%, at 3669.38.
TheStreet.com Internet Sector
index closed off 33.45, or 3.7%, at 864.31.
The technology sector of late has taken direction from performance of some of its bigger names, such as
and its woes with the government, and an earnings
last week. Today, it was
that was in part responsible for losses, following a negative piece on the company from
over the weekend. Cisco closed down 4 7/8, or 7.2%, at 62 7/8.
There was little incentive to buy today. Friday's employment report certainly did not suggest anything positive as far as the
goes. There may have been some nibbling from investors who anticipate a post-Fed rally after its policy meeting on May 16, though others likely will let the market slide further before they step in. James Cramer
recognized how fickle the market was acting, but was buying small amounts of some of his favorites, knowing that the market can turn around in a minute.
John Murphy, president of
, said he has not gotten caught up in the back-and-forth trade the market has been in, telling
that he sees the technology sector in a bear market and a retest of the recent lows still could be in the works.
Murphy said that the Nasdaq retraced roughly three-eighths from the 3230 low it made April 17, but right now that looks more like a bounce than the start of another leg up. And Friday's recovery came on such light volume, he said, that it was not significant, and he would continue to sell into rallies. Murphy said he is focusing on the Nasdaq's 200-day moving average, which was around 3570 today. A close below that, he said, would confirm a test of the lows from last month.
"We've been telling people for the last several weeks to move into the defensive areas of the market -- drugs, utilities, real estate and oil -- that's where most of the money has been going," he said. "They're going to do better when the rest of the market is selling off."
Among traditional Net names,
closed down 12 5/16, or 8.6%, at 131;
slipped 4 15/16, or 3.9%, to 120 3/4;
dropped 2 31/32, or 4.3%, to 56 1/32; and
ended off 5 1/2, or 4%, at 128 1/2. Note that eBay was trading at about half as much as it was back on March 27, when it went as high as 255 amid rumors that it would be involved in some type of merger or alliance with Yahoo!. That has not come to pass.
The sector's big winner was Web site manager
, which closed up 22 3/8, or 62%, at 58 5/16.
, a unit of
Nippon Telegraph & Telephone
said it would acquire Verio for $5.5 billion, or $60 a share, far above the 35 15/16 level it closed at on Friday.
closed up 3 1/4, or 31%, at 13 5/8 on news that it had entered into a licensing agreement with
Broadcast Music Incorporated
. The agreement will allow MP3.com to play BMI's 4.5 million compositions on its site.