Nortel Networks

(NT)

was down 5% in late morning after hitting a 52-week low of $18.84.

On Friday, the stock plunged more than 30% after Nortel cut its 2001 outlook and said it expects a first-quarter loss of 4 cents a share. The telecom equipment maker blamed the economic downturn in the U.S. and said the slowdown would continue well into the year.

Rival telecom equipment maker

Lucent

(LU)

was down 1%. The stock fell sharply Friday on reports the company was having trouble raising money.