Bailout Vote Jitters Drive Tech Stocks Down

Fears that the paralyzing credit crisis gripping the U.S. could dampen technology
spending hit tech stocks again on Thursday, sending the Nasdaq 4.5% lower to a fresh
three-year low.

Of the 25 most heavily traded Nasdaq stocks, only one ended the day higher, and it
took a buyout offer for Atmel (NASDAQ: ATML) to accomplish that. Atmel soared 34% on the
offer from Microchip (NASDAQ: MCHP) and On Semi (NASDAQ: ONNN).

Nearly half the Nasdaq most active list had losses of 7% or more, including Intel
(NASDAQ: INTC), Apple (NASDAQ: AAPL), eBay (NASDAQ: EBAY), Research in Motion (NASDAQ:
RIMM), Yahoo (NASDAQ: YHOO), Nvidia (NASDAQ: NVDA), Juniper Networks (NASDAQ: JNPR),
Broadcom (NASDAQ: BRCM) and Sun Microsystems (NASDAQ: JAVA).

eBay fell after Morgan Stanley cut estimates and downgraded the company, and Juniper,
KLA-Tencor (NASDAQ: KLAC) and Akamai (NASDAQ: AKAM) were hit by downgrades too.

Micron (NYSE: MU) rose 4% despite missing estimates in what the company called a
challenging environment.

IBM (NYSE: IBM) fell 5% a day after dropping 6% on worries about its upcoming earnings

Click Software (NASDAQ: CKSW) jumped 24% after raising guidance, while
(NASDAQ: TREE) fell 25% after announcing its earnings reporting date.

The broader market was hit by the latest evidence of a slowing economy and rising
unemployment. Friday morning – before the House takes up the president’s massive rescue
bill again after rejecting it on Monday – the Labor Department will issue its monthly
jobs report, which is expected to show a loss of 100,000 jobs last month.

The Nasdaq lost 92 to 1976, the S&P fell 46 to 1114, and the Dow tumbled 348 to
10,482. Volume rose to 6.33 billion shares on the NYSE, and 2.22 billion on the Nasdaq.
Decliners led 29-5 on the NYSE, and 23-5 on the Nasdaq. Downside volume was 89% on the
NYSE, and 95% on the Nasdaq. New highs-new lows were 11-629 on the NYSE, and 6-402 on the

Article courtesy of

Paul Shread
Paul Shread
Paul Shread has covered nearly every aspect of enterprise technology in his 20+ years in IT journalism, including award-winning articles on endpoint security and virtual data centers. He wrote a column on small business technology for, and covered financial markets for 10 years, from the dot-com boom and bust to the 2007-2009 financial crisis. He holds a market analyst certification.
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