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Stocks Dive At Intel's Warning
NEW YORK (AP) _ Stocks fell sharply Friday as investors, unnerved by an unexpected revenue warning from Intel, gave up hope that the economy and earnings would soon improve. The Dow industrials plummeted more than 200 points and the Nasdaq composite more than 100.
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The Dow skidded 213.63 to 10,644.62, ending a five-day winning streak. That run-up, however, enabled the index to end the week up 1.7 percent, or 178.31.
The Nasdaq composite index plummeted 115.95 to 2,052.78, its lowest close since Dec. 17, 1998, when it stood at 2,043.88. For the week, the Nasdaq lost 64.85, or nearly 3.1 percent.
The Standard & Poor's 500 index dove 31.32 to 1,233.42. The S&P ended the week off 0.76, nearly 0.1 percent.
"The bottom line is you are in a major bear market for technology, and it hasn't gotten any better," said Gary Kaltbaum, a technical analyst for First Union Securities. "You have to give the utmost respect to this market and stay out of the way."
Investors found plenty of reasons to sell. Late Friday, Cisco Systems became the third big high-tech company this week to announce a bleak outlook, following Intel and Yahoo!. And the government said the nation's employers created more jobs than the market expected, decreasing the chances of a big interest rate cut later this month.
Analysts said the market now expects the Fed to lower rates by a quarter point, or perhaps not at all, when it meets March 20. Wall Street had been hoping for a half-point reduction.
Intel fell $3.81 to $29.44. The company announced late Thursday that it will cut 5,000 jobs. Cisco announced Friday it will cut up to 3,000 jobs. The network equipment maker fell $2.19 to $20.63.
Other tech losses included Intel competitor Advanced Micro Devices, down $2.70 at $23.30, and Microsoft, which fell $2.56 to $56.69.
(Copyright 2001 by The Associated Press. All Rights Reserved.)
APTV 03-09-01 1711MST
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