Stocks ended broadly lower as the tech-sector's one-day comeback completely vanished. The Nasdaq Composite Index ended just off the day's low, losing 119 to 3979.
Profit warnings from big and small fish alike injected new jitters into the market as fears about profit fallout from an economic slowdown rose again.
Dow Jones Industrial Average lost 38 to 11,221, with much of the weakness coming from its technology components. The
S&P 500 was down 8 to 1495, while the
was off 7 to 536.
Although the Dow's financial components were strong, with
recovering from yesterday's profit taking, the old economy was dented by lower tech and cyclical giants.
was off 5.1% and
In keeping with the whiplash pace of rotation, semiconductors were on the downswing after a move up yesterday. A profit warning from
, a semiconductor equipment maker, sent the stock down 14% to $13.81 after it warned investors that it would post a first-quarter loss. The company blamed the shortfall on a tool delivery delay.
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With energy prices on the rise, utility stock were looking attractive. The Dow Jones Utility Average was buoying up to another all-time high of 385.56, with
rocking up 5.1% to another intraday high of $53.50. It was lately trading at $53.25.
With crude oil futures moving lower, oil stocks were losing energy.
The American Stock Exchange Oil & Gas Index
was off 1.8%. Oil investors are cooling off after Saudi Arabian oil minister Ali al-Naimi said he wants the price of $22 to $28 per barrel to be oil's benchmark.
"It's the week before the OPEC meeting, so this has got the street worried
about energy prices and what an impact that will have on earnings," said Peter Cardillo, investment strategist at
, commenting on yesterday's earnings warning from
. The chemical giant blamed higher raw material costs, in part, for the shortfall.
Philadelphia Stock Exchange Oil Service Index
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Treasuries rose for the first time in four sessions, as oil gives back some of the big gains it racked up earlier in the week.
Amid an economic data drought that will last through the first half of next week, bond traders are paying close attention to the price of oil, which yesterday exceeded $35 a barrel for the first time in 10 years. Rising oil prices have the potential to cause inflation elsewhere in the economy, reducing the appeal of bonds.
The benchmark 10-year Treasury note lately up 1/32 to 100 4/32, yielding 5.735%.
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