News > Technology
Techs still down, Nasdaq sheds 1.6%
Hard-hit semiconductors drag down tech shares for a second day and markets absorb GDP growth news.
April 29, 2004: 6:35 PM EDT

NEW YORK (CNN/Money) - Tech stocks tumbled for a second day Thursday following mixed reactions to first-quarter U.S. gross domestic product growth.

The Nasdaq composite index lost 30.76 points, or 1.6 percent, to close at 1,958.78. The AMEX Technology index fell 1.9 percent.

Technology shares were particularly vulnerable Thursday partly because of weakness in semiconductors, said Peter Green, a market analyst at MKM Partners. The Philadelphia Semiconductor slid 11.83 to 450.48, losing 2.6 percent.

Of many companies that dragged on the chip sector Advanced Micro Devices (AMD: down $0.57 to $14.60, Research, Estimates) fell 3.8 percent to $14.60, Cirrus Logic (CRUS: down $1.70 to $6.24, Research, Estimates) lost 22.1 percent, National Semiconductor (NSM: down $1.65 to $41.30, Research, Estimates) lost 3.8 percent and Texas Instruments (TXN: down $1.29 to $25.43, Research, Estimates) dropped 4.8 percent.

Micron Technology (MU: down $0.62 to $13.66, Research, Estimates) continued to fall in NYSE trade, down 4.3 percent on Thursday, after Smith Barney Citigroup downgraded the chipmaker's stock Wednesday, on fears that the company's chip output could increase and push down prices.

Network gear maker JDS Uniphase (JDSU: down $0.60 to $3.25, Research, Estimates) was the Nasdaq volume leader, down 15.8 percent. The company reported a narrower loss in its fiscal fourth-quarter, but those figures were below analyst expectations. The company also issued a warning about its current quarter and said that it did not see a clear recovery in its sector.

Other Nasdaq volume leaders include software manufacturer Oracle Corp. (ORCL: down $0.40 to $11.43, Research, Estimates), which slid nearly 4 percent, and software giant Microsoft, (MSFT: down $0.00 to $26.48, Research, Estimates) which eased down 0.3 percent.

Computer network company Cisco Systems Inc. (CSCO: down $0.40 to $21.91, Research, Estimates) ended the day down 2.1 percent. The company and IBM announced they would work as partners to make computer servers, strengthening ties between the two large technology companies.

IBM (IBM: down $1.33 to $89.08, Research, Estimates) fell 1.5 percent in active trade.

The Google IPO

Internet shares were active in afternoon trade on news that search engine Google has registered with the Securities and Exchange Commission for a highly anticipated $2.7 billion initial public offering.

Top Google rival Yahoo! Inc. (YHOO: down $1.10 to $54.71, Research, Estimates) lost 2.1 percent. Google's SEC filing said the company will terminate its current agreement with Yahoo! this summer. Ask Jeeves Inc. (ASKJ: down $2.10 to $38.75, Research, Estimates) dropped 5.3 percent.

But smaller search rivals fared slightly better. LookSmart (LOOK: unchanged at $2.44, Research, Estimates) rose 3.4 percent on the news; and gained 3.7 percent.

Tech shares were the NYSE volume leaders, with Nortel Networks (NT: down $0.20 to $3.85, Research, Estimates) topping the list, losing 4.9 percent.

Shares in the telecom manufacturer plummeted 28 percent Wednesday following news that first-quarter earnings figures would be delayed and that the company had fired its CEO and two other top executives amid a widening investigation into the company's accounting practices.

Mobile phone and chip manufacturing giant Motorola Inc. (MOT: down $1.01 to $18.59, Research, Estimates) dropped 5.2 percent, as telecommunications dipped along with semiconductor shares. Rival Nokia Corp. (NOK: down $0.33 to $14.27, Research, Estimates) fell 2.3 percent.

In positive news, better than expected earnings pushed Time Warner (TWX: up $0.46 to $16.97, Research, Estimates), parent of CNN/Money, up 2.8 percent.

Shares in the media conglomerate's AOL Internet service provider dropped more than 8 percent year-to-date, with investors voicing increasing concerns about the decline in dial-up subscribers, but revenues were unchanged from a year ago.

And Macromedia Inc. (MACR: Research, Estimates) shares gained 13.3 percent, reaching a high of 22 percent during active trade Thursday after the software maker doubled net income from a year earlier on higher sales of its online media publishing products.

Analysts at Merrill Lynch upgraded the stock to "buy" from "neutral," saying that sales of the company's flagship Studio MX, Flash and Dreamweaver brands each posted better-than-expected growth from the previous quarter, and that new products will drive growth in fiscal 2005.

Video game stocks fell sharply, on what analysts said was concern over hardware leader Sony Corp.'s recent sales forecast. Earlier this week, Sony forecast a 30 percent decline in worldwide shipments of its popular PlayStation 2 for the year ending March 2005, a figure well below what analysts estimate.

Industry video game software leader Electronic Arts Inc. (ERTS: down $0.80 to $49.95, Research, Estimates) reported after the bell first quarter net revenue up 19 percent year-on-year. Shares fell 1.7 percent, but had gained 1.7 percent in after-hours trade on INET.

Take-Two Interactive Software Inc. (TTWO: down $1.10 to $29.43, Research, Estimates) fell 3.7 percent.  Top of page

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