It's gray and nasty on Wall Street today and from the looks of the market, investors and traders felt the same.
Dow Jones Industrial Average lately was stuck firmly in the downside, while the
Nasdaq Composite Index was starting to let go of a tepid rally on heavy volume.
The Nasdaq got a running start at the opening bell fueled by mostly good earnings announcements. The Dow from the get-go was suffering from profit-taking.
With all the good news that came out after last night's close, the Comp really should have been getting a nice a bounce instead of this slight one, but it seemed to be getting a big downward tug from
. The networker, which was the most actively traded stock on the Nasdaq of late, met earnings estimates, but
missed revenue estimates. The stock lately was down 10.9% to $31.06.
The company also lowered its 2001 sales growth guidance, sparking downgrades and earnings cuts by a slew of analysts, including
And there were others in the Comp that were acting up. Internet player
posted a loss far greater than expected. Actually, the company had previously said that it expected to be profitable by its fourth quarter, but the Internet messaging and mail software company is now saying it won't be profitable for three more quarters. It got hit with a downgrade to buy from strong buy from
. Critical Path was 47.4% lower to $10.25.
lately was falling after it warned this morning that its first-quarter earnings would miss estimates because of lower spending by customers.
and SG Cowen acted quickly and downgraded the stock. In recent trading the stock was down 26.7% to $15.69.
Still, there were some bright spots on the Comp, namely
, which was also one of the most actively traded stocks today after it beat its fourth-quarter revenue estimates and noted a 20% increase in unearned revenue from a year ago - which points to greater future revenues. The company
met reduced earnings estimates. Microsoft was up 7.7% to $59.75.
Also, Internet auction site
was up 7.9% to $50.59 after
beating earnings and revenue estimates. Earnings came in at 9 cents, 2 cents ahead of forecasts. eBay, one of the few profitable Internet companies, announced Tuesday that it would raise the fees it charges to list items for auction in its Canadian business, giving investors further confidence in the company's business model. eBay was rewarded with a slew of analyst upgrades.
Meanwhile on the Dow, some positive momentum was coming from its tech components including Microsoft,
was sinking, however, off 4.9% to $$42.12 after it warned it expects fiscal fourth-quarter earnings to fall short of Wall Street estimates and that it sees weakness rolling over into the first half of this year. The company -- whose fiscal quarter ends Jan. 31 -- blamed the slowing economy and falling prices for building materials. Home Depot is now estimating earnings per share for the fourth-quarter of 20 cents per share, compared with analyst estimates of 24 cents per share. In the fall, it met lowered estimates for its third quarter, but said the fourth quarter would be disappointing.
Back to top
Philadelphia Stock Exchange Computer Box Maker Index
was up 1.6%. It was still getting some residual boost from
stellar earnings report. IBM was up 3.2% to $111.69.
was also bouncing. The PC maker got a nice upgrade to buy from hold from
Credit Suisse First Boston
Delta Air Lines
was helping to take down the
American Stock Exchange Airline Index
Dow Jones Transportation Average
. Yesterday, the airline announced that its earnings declined 54%. At the beginning of January, Delta had warned that a labor dispute with its pilots would cut revenue.
Back to top
Treasuries have been trading lower today as investors take profits after bonds' three-day rally. The strong opening in equities, paced by better-than-expected earnings from prime tech movers, has also lessened the draw of fixed-income instruments. But stocks are mostly in retreat now, giving Treasuries some breathing space. The long bond, which had led the money market rally over the past week, is still deep in the red. Yields are up marginally across the board.
Notes and bonds had rebounded in recent days on renewed hopes that the
Federal Reserve will lower interest rates by half a percentage point.
The benchmark 10-year
Treasury note lately was down to 7/32 to 104 18/32, raising its yield to 5.142%.
In economic news, the
) report showed that the deficit narrowed to $32.99 billion in November from a revised reading of $33.55 in the prior month. This is the first time since mid-1997 that the deficit has declined two months in a row. Imports as well as exports fell. The trade data, however, lags behind the latest news about the economy. Currently available numbers support the view that the economy is slowing.
Consumer Sentiment Index
chart ) fell to 93.6 in January from 98.4 in December, its lowest level since Oct. 1998. The gauge measures the confidence consumers have in the economy six to nine months in the future.