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The Night Watch: Internet Capital's Stock Slashed on News of Layoffs

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(Updated from 7:57 p.m. EST)

Shares of

Internet Capital Group


dove into negative territory in the postclose market. After the bell, the incubator for business-to-business companies announced that it plans to cut its staff by 35% and take a fourth-quarter charge of $25 million to $30 million in an effort to strengthen its financial position. That move has done nothing to help its stock price tonight. Internet Capital Group sank $4.13, or 25.4%, to $12.13 on


ECN and fell $3.94, or 24.2%, to $12.31 on



Internet incubator



stock decreased $2.81, or 12.9%, to $19 on Island and lost $1.56, or 7.2%, to $20.25 on Instinet, after online marketing company



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-- which is majority-owned by CMGI - said that first quarter revenues would be lower than expected. Engage attributed the shortfall to oversupply in the media market and weaker demand from Internet companies, among other factors. Engage, meantime, lost 90 cents, or 26%, to $2.56 on Island.

Also active tonight was


(IBM) - Get International Business Machines Corporation Report

stock, which lowered $2, or 2%, to $98, on news that shipments of its newest main-frame computer would be delayed until next year. The company's announcement tonight that services sales growth should be stronger in the fourth quarter than in the third quarter did not seem to provide any relief for its stock.

While the chips may still be on the table in the presidential election, on the stock market the chips have fallen off.

For the second day in a row, semiconductor stocks tumbled as concern about a slowdown in demand for communications chips mounted. The technology-laden

Nasdaq Composite Index plunged 184 points to 3231.7, while the

Philadelphia Stock Exchange Semiconductor Index

dropped 51 points, or 7.1%, to 664.8.

In its earnings report on Monday,

Cisco Systems

(CSCO) - Get Cisco Systems Inc. Report

said that its inventory of communications chips had grown sequentially by 59%. That parts buildup signaled to some on Wall Street that there might be a deceleration in demand for chip components from the giant network equipment manufacturer and other similar companies. This in turn triggered a selloff in the semiconductor industry.

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Shares of

PMC Sierra


, which tanked 15% during the regular session, lost an additional $1.19, or 1.1%, to $107.50 in nighttime trading on


ECN and decreased $1.63, or 1.5%, to $107.06 on Instinet. PMC Sierra receives approximately 15% of its revenue from Cisco.

Fellow chip maker



shed $3.81, or 2.5%, to $148 on Island. That stock was down 14% on the day. Broadcom also gets about 15% of its revenue from Cisco.

Shares of

Sun Microsystems

(SUNW) - Get Sunworks Inc. Report

improved $1.69, or 1.7%, to $102 on Island and gained $1.44, or 1.4%, to $101.75 on Instinet, reversing a 10% slide amid today's technology selloff. After the close, the computer company announced that its shareholders had approved a doubling of the company's number of authorized shares, setting the stage for a stock split.

Finally, large-cap technology stocks


(MSFT) - Get Microsoft Corporation Report



(DELL) - Get Dell Technologies Inc. Class C Report

got some play tonight. Ahead of its earnings release tomorrow, Dell gained 19 cents, or 0.6%, to $30.50 tonight on Instinet.

Meantime, Microsoft -- the most active stock on Instinet tonight -- shed 19 cents, or 0.3%, to $69.25, continuing the downward turn it took late in the day. Investors betting on a Bush victory kept Mister Softee above water for much of the day. A win by the Republican presidential candidate is expected to be more easygoing toward the Justice Department's antitrust suit against Microsoft. But the tech giant ultimately succumbed to today's broad technology selloff, ending the day down $1.06, or 1.5%, to $69.44.

This information is provided by Instinet, a wholly owned subsidiary of Reuters (RTRSY) . For further information, please contact Instinet at

Island ECN, owned by Datek Online, offers trading, mainly in Nasdaq-listed stocks, from 7 a.m. to 8 p.m. EST.


explains how the rules change when the sun goes down in Investing Basics: Night Owl, a section devoted to after-hours trading.