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Today's Market: Dow, Nasdaq Close Lower as Profit Fears Build

Volume was light, in part because the NYSE suspended trading for more than hour because of a technical glitch.
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Wall Street was tripped up by earnings warnings today, not to mention a technical glitch that completely shut down trading on the

New York Stock Exchange for more than an hour this morning.

The

Nasdaq Composite Index fell 49 points, or 2.2%, to 2215, after

Juniper Networks

(JNPR) - Get Juniper Networks, Inc. (JNPR) Report

warned that second-quarter revenue would be significantly below expectations. Shares of Juniper plunged 18.5% to $38.02, while its chief rival,

Cisco

(CSCO) - Get Cisco Systems, Inc. Report

, dropped 6.1% to $20.49.

Juniper said its second-quarter revenue would come in around $200 million to $210 million, compared with its previous guidance of $300 million to $330 million. In response to the preannouncement, the

American Stock Exchange Networking Index

fell 4.3%.

Lucent

(LU)

decreased 1% to $8.40 and

JDS Uniphase

(JDSU)

dropped 5.7% to $16.05.

The

Dow Jones Industrial Average closed down 114 points, or 1%, to 10,977, falling sharply after the New York Stock Exchange resumed trading around 11:35 a.m. EDT. For the second time since the beginning of the month, the blue-chip index slipped below the 11,000 threshold. The broader-market

S&P 500 Index shed 12 points, or 0.9%, to 1265.

Trading was officially halted in all NYSE stocks at 10:10 a.m. EDT this morning. Ten of the Dow stocks failed to open for trading this morning. By 1:40 p.m. EDT, the index was fully trading, as

IBM

(IBM) - Get International Business Machines (IBM) Report

resumed activity. Its stock fell 1% to $116.10. Some NYSE stocks traded on electronic exchanges while the Big Board was closed. Volume on the NYSE was the lowest since last Nov. 24. Activity on the Nasdaq was also light today.

"Put a couple hours worth of activity back into the market, and it's still low volume," said Jim Volk, co-director of institutional trading at

D.A. Davidson

. "There is a concern about earnings. Until we get better visibility, stocks are going to trade in a range and back a bit on preannouncements."

Tech bulls were down and out today, less than 24 hours after

Intel

(INTC) - Get Intel Corporation (INTC) Report

reaffirmed its revenue targets for the second quarter. The company was upbeat about the PC sector and said it expects overall business to improve in the second half of this year.

Notwithstanding the result,

TheStreet Recommends

Goldman Sachs

this morning lowered its fiscal 2001 and 2002 earnings forecasts on Intel,

National Semiconductor

(NSM)

and

Lattice Semiconductor

(LSCC) - Get Lattice Semiconductor Corporation Report

. The latter stocks recently lowered their own earnings forecasts. Intel shed 1.5% to $30.67, and Lattice dropped 3.8% to $24.92. National Semiconductor fell 6.2% to $29.13.

Earnings warnings from tech companies sprouted like weeds overnight.

TranSwitch

(TXCC)

said last night that it expects to post a second-quarter loss instead of the previously expected profit.

3Com

(COMS)

dropped its targets for fourth-quarter revenue, and

Handspring

(HAND)

cut its fourth-quarter revenue forecast.

So far this confession season, earnings news from some of the heavy-hitters has been negative.

Sun Microsystems

(SUNW) - Get Sunworks, Inc. Report

last week warned that it would miss second-quarter targets. PC maker

Hewlett-Packard

(HWP)

Wednesday

cautioned that a global slowdown in information technology could hurt its revenue. Financial powerhouse

J.P. Morgan Chase

(JPM) - Get JPMorgan Chase & Co. (JPM) Report

said it expects trading revenue in the remaining quarters of this year to be lower than its first-quarter results because of poor market conditions.

In April, investors pumped up stocks significantly as they bet that corporate earnings would improve in the third quarter. But now a consensus seems to be forming that a recovery won't happen until the fourth quarter of this year or early next year. The

Federal Reserve has cut interest rates five times this year in a bid to get a sluggish economy back on its feet.

For the week, the Dow fell 0.12%. The Nasdaq gained 3.1%, and the S&P 500 slid 0.34%.

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