SAN FRANCISCO --
had Dow 10,000 worshipers singing the Big Blues as losses in the stock helped keep the
from closing below 10,000 yet again.
IBM closed 9 1/16 lower, or 5%, at 168 9/16. It contributed roughly 40.5 points to the Dow's 94-point decline. The Dow finished the day at 9,903.5. It held above 10,000 much of the day until around 2 p.m., when IBM began to slide.
That was about the time published reports emerged that
Morgan Stanley Dean Witter
analyst Thomas Kraemer lowered his target on IBM to 195 a share from 210, though he maintained an outperform rating on the stock.
reported that Morgan Stanley had worries about revenue growth at IBM and that first-quarter revenues may not meet estimates. Morgan Stanley would not provide a copy of the report to
, saying any information about it would be on the wires.
Confusion surrounding whether Morgan Stanley Dean Witter said anything about IBM may have contributed to some of the selling in the stock. Headlines from
at 2:11 p.m. EST indicated that Morgan Stanley said it had made no comment on IBM. Another headline followed: "Morgan Stanley Denies Rumor That It Made Comments on IBM." At 2:25 EST, a corrected
headline indicated that Morgan Stanley did not deny it made comments on IBM.
There were rumblings of an earnings shortfall from IBM on Thursday, when it fell roughly 3 points.
addressed some of that talk in a report released this morning, saying "there is no evidence to suggest that IBM's quarter is coming in materially differently than general expectations." According to
, IBM is expected to report earnings of $1.42 cents a share.
There were other big movers today, including
, which issued an earnings warnings on Thursday. The computer consultant closed 9 5/8 lower, or 46%, at 11 3/8.
Cambridge Technology's woes brought down its rivals as well, though
CS First Boston
noted that the earnings problems were not an industry
closed down 2 5/8, or 10%, at 23 1/2 and
Complete Business Solutions
closed 2 5/8 lower, or 12%, at 20 1/8. Shares of
recovered from a low of 61 1/4 to close 1 point lower at 65.
Gates Open for Gateway CEO
CEO Ted Waitt saw his annual salary more than double last year, according to the PC company's proxy filed this afternoon with the
Securities and Exchange Commission
. Waitt received a base compensation of $1 million in 1998, along with an $800,000 bonus after the direct seller of PCs saw its stock price rise around 50% in 1998. In 1997, when Gateway shot up 120%, Waitt made only $854,000 in salary and bonuses, $111,000 less than he made in 1996.