Updated from 4:06 p.m. EDTAn earnings warning from Motorola ( MOT) and problems at a big mortgage player deflated stocks on Monday. Once down more than 100 points, the Dow Jones Industrial Average ended down 82.79 points, or 0.9%, at 8980.00. Tech stocks were the day's big losers, with the Nasdaq down 23.45 points, or 1.4%, at 1603.97, while the S&P 500 was down 11.83 points, or 1.2%, at 1603.93. The negative tone was pronounced on Monday, with decliners doubling up advancers on both the NYSE and Nasdaq on solid volume. And while stocks sank, Treasuries rallied, with the 10-year bond up 16/32, lowering its yield to 3.29%. The stock market slide comes after some serious gains, with the Dow hitting 9062 on Friday, about 23% above its March 11 nadir. But traders were taking profits after Motorola reduced its second-quarter sales and earnings outlook because of lower-than-expected sales of cell phones in Asia. It cited the SARS outbreak and large inventories. Shares fell 21 cents, or 2.4%, to $8.68. The government said wholesale inventory levels fell 0.1% during April, better than the consensus expectation of a 0.2% rise and better than March's 0.5% rise. As suggested in TheStreet.com's look at
Electronics retailer Circuit City ( CC) said Friday that it is thinking of selling its battered credit card business. Shares gained 5 cents, or 0.8%, to $6.49. In analyst actions, Sun Microsystems ( SUNW) slid 6 cents, or 1.2%, to $5.14 despite the fact Goldman Sachs upgraded the company to in line from underperform, telling investors that demand has stabilized, end markets have bottomed and valuation seems reasonable. Also, Lehman Brothers downgraded a few telecom-equipment stocks to underweight from equal weight, including Nortel Networks ( NT) and Tellabs ( TLAB). Nortel fell 16 cents, or 4.9%, to $3.14, while Tellabs fell 41 cents, or 5.1%, to $7.68. Lehman Brothers also raised its rating on SBC Communications ( SBC) to overweight from equal weight. Shares gained 62 cents, or 2.4%, to $25.80. Overseas markets were mixed, with London's FTSE 100 closing down 0.5% at 4129 and Germany's Xetra DAX closing down 1.1% at 3095. In Asia, Japan's Nikkei closed up 0.4% at 8822, while Hong Kong's Hang Seng gained 0.4% to 9733.