An earnings warning from electrical-components maker
Banc of America
were stinking up the tech bellwethers this morning, which were leaning on both the
Nasdaq Composite Index and the
Dow Jones Industrial Average.
But the indices have sported wild intraday swings of late, and it was unclear where they'll end the day. Earlier this morning, it looked like tech stocks might get another bounce, and the Nasdaq has tried for a turnaround twice this morning. The Nasdaq Comp was lately back in the red, down 11 to 3838.
SCI Systems cut its fiscal first-quarter profit forecast this morning, citing weakness in consumer electronics and dead PC-demand. News of weak PC-demand was crippling SCI's biggest customers in that arena,
said the earnings warning was "entirely company specific" and reduced SCI's first-quarter revenue estimate to $2 billion from $2.3 billion and earnings per share to 34 cents from 38 cents.
The Dow was certainly feeling pressure from H-P and Intel. H-P was down 3.9% on the SCI news and continued worries over its plans to acquire
, and was lately slashing some 34 points from the Dow. Intel was 4.9% lower, cutting around 18 points from the blue-chip benchmark index. The Dow was 57 lower to 11,178.
The S&P 500 was down 4.5 to 1478, the Russell 2000 was 1.3 lower to 531.
In the Internet world, Web giant
announcement that it will acquire
for some $1.3 billion in stock was giving some push to the sector. Fastforward Networks makes technology for distributing online broadcasts.
According to the terms, Inktomi will exchange 11.9 million shares for all outstanding shares options and warrants of the closely held firm. Fastforward will take on the Inktomi label, as its media unit, and will be led by current Fastforward CEO and President Abhay Parekh.
TheStreet.com Internet Index
was falling 3.2%.
Though yesterday's news,
$33.2 billion acquisition of
continued to be a big item for today's market; Chase was the most active stock traded on the New York Stock Exchange.
Chase was lately down 5.5% to $49.94, while J.P. Morgan was down 3.9% to $178.25. The deal values Morgan at $207 a share based on Chase's closing price yesterday.
wrote an article about the
details of the deal that also analyzes what the merger means for the
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Despite negative comments on DRAMs -- or commodity chips -- from
Morgan Stanley Dean Witter
, the sector was lately getting a lift. But the
Philadelphia Stock Exchange Semiconductor Index
was down fractionally, after getting an earlier lift thanks to
, which was soaring 5.4%. The chip-maker was countering weakness from
and Intel on news that it has entered a new chip-licensing pact with Japanese-based
-- considered merger targets -- were falling on the Chase-J.P. Morgan mega-merger news. Lehman was lately down 2.3%, while Merrill was off 4.7%. Other brokerages were also under pressure, and the
American Stock Exchange Broker/Dealer Index
was off 0.7%.
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The 10-year Treasury note was lately up 7/32 at 100, and yielding 5.749%.
Yesterday, treasuries remained flat in high-volume trading.
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