post-close bombshell was taking apart the box makers in early trading and the rest of the market.
Last night after the close, PC giant
said it expects to miss fourth-quarter earnings estimates by a substantial margin. Investors dragged the company's shares into the mud during after-hours trading, cutting the company's value almost in half.
took a closer look at the
plunge in a piece last night.
Apple's warning was certainly having its effect on the
Dow Jones Industrial Average. PC-making components
were weighing most heavily on the blue-chip index, with H-P slashing some 44 points and IBM knocking off around 20 points.
Other big downers for the Dow were
In fact, the PC maker may not be the only "bad apple" in the patch today. An article on
reported that shipments of
long-awaited Pentium 4 processors are going to be delayed.
Citing PC manufacturers, the story says that the Pentium 4 is not expected until the week of November 20 and possibly later. The processor had been expected to arrive around the end of October.
, which issued a
profit warning last week, was lately down $1.94, or 4.41.94%, to $42.50.
Boeing was suffering from disappointment over
decision to purchase airplanes from its competitor
. Boeing had been hoping to win the contract.
From the close of composite trading, H-P was off 6.3%, IBM was down 2.0% and Boeing was off 3.7%.
was getting hit hardest among the PC-makers because it, like Apple, is consumer-centric. Oh, and it was downgraded by
Morgan Stanley Dean Witter
. Gateway was lately trading down 14.8%. Other PC-makers, like
were off 2.0% and 7.5%, respectively.
Elsewhere on the Nasdaq,
Research in Motion
was surging this morning, lately up 19%.
On the NYSE, the largest independent cement-maker in the U.S.,
was flying following news it would be acquired by Mexico's biggest cement-maker,
, for $2.6 billion.
was taking a beating following its own earnings warning this morning. United said it expects to report a loss for the third quarter and possibly in the fourth, due to operational "disruptions." The airline was plagued by labor problems over the summer. United was lately down 6.3%.
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Internet stocks were in the hole again, following a little rally yesterday on some positive comments from
were falling 2.4% and 1.1%.
Despite a drop-off in crude oil prices, energy stocks were faring well today. Crude-oil prices tumbled $1.12 to $30.33 a barrel after Saudi Arabia said the country is prepared to supply the world with as much oil as necessary to help deflate price pressure. The
American Stock Exchange Oil & Gas Index
was off 1.0%.
As investors scrambled to draw their money out of tech, other defensive stocks continued to show strength as well, with the
Amex Tobacco Index
up 1.0%, the
Dow Jones Utility Average
3.4% higher and the
American Stock Exchange Pharmaceutical Index
Financials were also rising, with the
American Stock Exchange Broker/Dealer Index
up 1.8% and the
S&P Insurance Index
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The benchmark 10-year Treasury note was lately 6/32 higher at 99 20/32, and yielding 5.799%.
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