Tech stocks opened Monday morning with big gains, but by midafternoon, another downturn had taken over the market. The Nasdaq slipped 29 points, or 1.8%, to 1618 in recent trading, coming off a high brought on by news of two separate economic stimulus packages in the U.S. and China. Shares of Nortel ( NT) plummeted 13.7% to $1.01 after the Canadian telecom posted a $3.4 billion loss in the third quarter. Revenue fell 14% to $2.32 billion. The company said it plans to cut 1,300 jobs. Shares of Clearwire ( CLWR) dropped 3.6% to $7.75 after the company missed expectations for third quarter results. Clearwire narrowed its loss to $166.6 million, or $1.01 a share, compared with a loss of $328.6 million, or $2.01 a share, in the year-ago period. Analysts had predicted a loss of $1 a share. Revenue jumped 47% from a year ago to $60.8 million, beating Wall Street estimates of $55.5 million, according to the Thomson Reuters. Shares of Applied Materials ( AMAT) slipped 4.5% to $10.73 after Oppenheimer downgraded the stock to perform from outperform. The firm said Applied's efforts to expand into the solar power business have been hard hit by the economic downturn. Dell ( DELL) shares slipped 5.2% to $11.90 on a report in the Wall Street Journal that it would not release its new portable music player in time for the holidays. Dell had been testing prototypes of a mini MP3 player earlier this year using software developed by Zing. But the Journal reports that the company decided to postpone Zing's release as it finalized the system.
Shares of Brocade Communications ( BRCD) climbed 9.9% to $4.22 after the data storage equipment maker raised its sales outlook for the fourth quarter based on preliminary results. The company now expects to report revenue of $396 million to $400 million, an increase from its previous guidance of $375 million to $385 million. It also expects earnings of 3 cents to 5 cents a share, widening its earlier estimate of 4 cents to 5 cents a share. On Friday, Brocade revealed that it had revised a deal with Foundry Networks ( FDRY), giving Foundry shareholders $16.50 a share in cash in a deal worth $2.6 billion. Brocade had earlier offered $19.25 a share but lowered the price amid concerns over the financial crisis. Shares of Foundry were up 6.9% to $15.44 on Monday. Dish Network ( DISH) shares tumbled 13.6% to $13.41 after posting disappointing third-quarter results. The company reported third-quarter revenue of $2.94 billion, in line with Wall Street expectations. But third-quarter profit came in at 20 cents a share, well below analysts' expectations of 58 cents a share.