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CNNfn's tech stock report
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July 31, 1998: 6:48 p.m. ET
A broad-based selloff sweeps almost every part of the tech sector lower
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NEW YORK (CNNfn) - What started off as a pretty modest selloff picked up steam as Friday wore on and the drumbeat of earnings worries and Asian jitters grew louder.
By the close, the Nasdaq Composite was down 47.19 points -- erasing all of Thursday's 38-point gain -- to close at 1,872.39. For the week the Nasdaq lost a bit more than 3 percent.
Ascend Communications (ASND) dropped 7-1/32 to 44-15/32, after reports circulated it will buy Stratus Computer (SRA) next week.
Stratus shareholders didn't seem perturbed. That stock rose 7/8 to 28-7/8.
The big-name technology stocks that rallied Thursday gave back a fair amount of ground. Lucent Technologies (LU) fell 2-7/8 to 92-3/8. Cisco Systems (CSCO) lost 2-3/4 to close at 95-3/4. Microsoft (MSFT) sank 3-1/2 to 109-15/16. Intel (INTC) rallied in the early going, but it was eventually dragged under. The chip giant lost 3-3/16 to 84-7/16.
Most PC-makers also retreated, with Dell Computer (DELL) losing 4-5/32 to 108-19/32. Rival Gateway (GTW) shed 1-15/16 to 54. Compaq Computer (CPQ) and IBM (IBM) both slipped 7/8 on the day.
Internet stocks began their slide on Tuesday and it shows no sign of slowing. CNET (CNWK) led the way, falling 3-1/2 to 51-1/2. Search engine Lycos (LCOS) fell 2-7/8 to 57-1/8. Internet book and music seller Amazon.com (AMZN) lost 2-7/8 to 110-7/8.
Yahoo! (YHOO) held up pretty well, slipping 3/4 to 181-15/16. One thing to keep in mind: Yahoo split its stock two-for-one after the close, so don't panic when you see the price on Monday.
Most of the earnings-related news was bad.
Egghead.com (EGGS) dropped 3-3/8 to 14-1/2, after reporting late Thursday its losses widened in the latest quarter.
JDA Software Group (JDAS) sank 5-1/4 to 17-3/4, after the maker of software for the retailing industry reported a sizable loss for the quarter. Analysts had expected a profit.
PegaSystems (PEGA), however, managed to post a positive surprise. The software maker rose 2-1/16 to 28-1/8.
Checking a pair of the day's initial public offerings: Carrier Access (CACS), which makes telecommunications equipment, went public at 12 and rose 4-1/8 on the day.
A different story for Northeast Optic Network (NOPT). That company provides fiber optic lines for communications companies. Its stock fell 1-1/2 points on its first day of trading, closing at 10-1/2.
For the latest information on technology, tune into CNNfn's "Digital Jam" weeknights at 7:30 p.m. ET or click here to watch the program via vxtreme.
--by staff writer Brendan Hasenstab
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