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Markets & Stocks
Hot Stocks: Tech trampling
March 12, 2001: 4:26 p.m. ET

Ericsson, Silicon Storage, Cisco lead the sellers but IntraNet shines
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NEW YORK (CNNfn) - U.S. technology stocks fell Monday, led by telecom equipment maker Ericsson after it cut its revenue guidance for the first quarter, and chipmaker Silicon Storage, which warned of disappointing first-quarter revenue and earnings.

Networking stocks were also falling under pressure after one networking leader added to the bad news in the tech sector at large. Cisco Systems slid after the computer networking company announced plans to cut up to 8,000 jobs.

But one bright spot in technology was Web-content management firm IntraNet Solutions, which gained after releasing the latest version of its management system.

Monday's losers

Ericsson (ERICY: Research, Estimates) down $2.09 to $6.28. The Swedish communications-equipment maker cut its guidance for first-quarter 2001 sales, citing slower growth in information technology spending.

Silicon Storage Technology (SSTI: Research, Estimates) down $1.19 to $9.31. The chipmaker said it expects first-quarter revenue and profit to fall far short of expectations due to a weakening economy and soft demand.

Cisco Systems (CSCO: Research, Estimates) down $1.81 to $18.81. The computer networking company is planning to cut as many as 8,000 jobs, or roughly 16 percent of its total work force, the company said late Friday.

Ciena (CIEN: Research, Estimates) down $11.81 to $53.31, Juniper Networks (JNPR: Research, Estimates) down $5.19 to $49.69, JDS Uniphase (JDSU: Research, Estimates) down $3.13 to $22.88, Nortel Networks (NT: Research, Estimates) down $1.25 to $16.65. Other networking companies fell on Cisco's news, extending a general Nasdaq slump that took the composite index below 2,000, the first time it has been this low since December 1998.

PMC-Sierra  (PMCS: Research, Estimates) down $4.31 to $31.63. The semiconductor networking firm fell after Salomon Smith Barney downgraded it to "outperform" from "buy."

Gilat Satellite Networks (GILTF: Research, Estimates) down $17.75 to $13.94. The Israeli satellite-communications company posted fourth-quarter earnings that missed Wall Street forecasts, and warned 2001 results would fail to meet expectations because of the economic slowdown hitting technology products.

SPX (SPW: Research, Estimates) down $8.08 to $95.52. SPX, which supplies parts and services to vehicle manufacturers, has agreed to buy diversified manufacturer United Dominion (UDI: Research, Estimates) for $954 million in stock plus $876 million of debt.

Enron (ENE: Research, Estimates) down $7.57 to $61.27. Enron Broadband, a subsidiary of the natural gas firm, terminated its exclusive relationship with Blockbuster to provide consumers with entertainment on demand (EOD) over the Internet. Credit Suisse First Boston cut its 12-month price target on Enron to $110 from $128.

Ebay (EBAY: Research, Estimates) down $2.44 to $31.56. Microsoft  (MSFT: Research, Estimates) down $4.75 to $51.94. The online auctioneer will use Microsoft technology to create a standard method for integrating Ebay auctioning technology in third-party Web sites.

Monday's winners

IntraNet Solutions  (INRS: Research, Estimates) up $1.19 to $18.88. The leading provider of Web-content management solutions released the latest version of its Xpedio Content Management system, which allows customers to quickly deploy business Web sites and automates the process of maintaining information on these sites.

American General (AGC: Research, Estimates) up 55 cents to $38.80. The Houston-based insurer agreed to be acquired by Britain's Prudential for $26 billion in stock, about 28 percent above the stock's closing price Friday.

United Dominion Industries (UDI: Research, Estimates) up $2.47 to $21.97. SPX (SPW: Research, Estimates), which supplies parts and services to vehicle manufacturers, has agreed to buy diversified manufacturer United Dominion for $954 million in stock plus $876 million of debt.

Inter-Tel  (INTL: Research, Estimates) up 72 cents to $9.75. The provider of business telephone systems announced a new product line, the Eclipse, which is designed to protect a business' hardware investment by adding applications and upgrades via software.

Pitney-Bowes  (PBI: Research, Estimates) up 75 cents to $36.21. Lehman Brothers raised its 12-month price target on the office products firm to $41 from $35, citing rising confidence in Pitney Bowes' ability to reach the 9 percent growth in earnings forecast by Lehman for 2001.

Maytag (MYG: Research, Estimates) up 40 cents to $37.01. The appliance maker said it plans to boost capital investments by almost 17 percent to $190 million this year as it expands production to meet demand for its high-margin Neptune and Atlantis washers and dryers.

Friede Goldman Halter  (FGH: Research, Estimates) up 84 cents to $3.29. Norway's Ocean Rig ASA (OCR NO) said it will pay the maker of offshore oil-drilling equipment to complete work on two offshore rigs. The accord resolves a two-year-old dispute.

-- compiled by Catherine Tymkiw from staff and wire reports graphic




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.