Wall Street has opened the Wednesday session on a negative note. Nasdaq is losing 1.33% and the Dow Jones is down 0.2%.
The profit warning released this morning by software security company
(Nasdaq:NETA) is dragging the technology sector into negative ground.
Apparently irrespective of Networks Associates' warning, its Israeli rival
(Nasdaq:CHKP) is off 2% to $137.
The recent spate of profit warnings by technology companies as well as by companies associated with the blue chips sector, in addition to all too many macroeconomics markers, point to a significant slowdown in the American economy.
Traders respond to the slowdown in more than one way. On the one hand the slowdown affects the growth of companies and traders gets worried about the companies' future results, but on the other hand the slowdown increases the chances for further cuts in key interest rates. Traders are hoping that the cut will revive the slump-market.
Web-performance solutions company RadView Software (Nasdaq:RDVW) has already made use of the slowdown to explain its failure to meet forecasts. RadView is the small rival of
(Nasdaq:MERQ). RadView released before opening today a warning that its revenues in the fourth quarter of 2000 will total $2.7 million to $3 million against the sales forecast of $3.6 million. RadView's sales in the fourth quarter of 2000 are expected to fall short of its sales in the third quarter.
Not that RadView is one of Wall Street's favorites, and in fact since its IPO in August this year, the stock has lost 70% to $3. As of writing, the shares are losing 17% to $2.5.
(Nasdaq:SPNS) today announced that it has completed a $15 million financing round by private placement. The investors were the venture capital fund Magnum Technologies Fund and the Israeli company
(Nasdaq:FORTY). The companies invested in bonds convertible to Sapiens shares at $1.5. Sapiens is down 19% to $0.80.