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CNNfn's tech stock report
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July 24, 1998: 6:39 p.m. ET
Internet issues lead the sector lower but there are a few bright spots
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NEW YORK (CNNfn) - Persistent earnings worries and a big retreat among Internet stocks set the tone in the tech sector Friday.
The Nasdaq composite finished a choppy session down 4.23 points at 1,930.99. For the week, the Nasdaq fell more than 3.8 percent.
Search engine stocks lost ground after Infoseek (SEEK) warned that the number of people visiting its site has slipped. Infoseek stock fell 2-3/8 to close at 29.
Yahoo! (YHOO) dropped 7-1/4 to 182-1/8. Lycos (LCOS) lost 6 to finish at 67-1/4. And Excite (XCIT) suffered after Lehman Brothers cut its rating on the stock to "neutral." Excite closed down 1-13/16 at 44-5/8.
Other Internet stocks cooled off, too. Book and music retailer Amazon.com (AMZN) sank 3-3/8 to 124-1/4.
America Online (AOL) extended its slide, falling 6-7/16 to 119-1/6. That stock hit a 52-week high of 140-1/2 back on Tuesday afternoon.
Internet media company CNET (CNWK) lost 5-5/8 to 64-3/4.
And high-flying Internet service provider MindSpring Enterprises (MSPG) slipped 1/2 to close at 148-1/2. It was a quiet end to a wild week for MindSpring. The stock rose about 37 percent in the last five days.
Cisco Systems (CSCO) fell 1-3/8 to 97-3/4 on concerns the networking giant's stock may have gotten ahead of itself.
Gateway (GTW) dropped 6-1/4 to 52-1/2 after the company missed quarterly earnings targets. Other major PC stocks ended the day little changed.
i2 Technologies (ITWO) fell 8-11/16 to 27-11/16, a loss of more than 23 percent. The supply chain management software maker reported its overseas sales slipped, and that prompted a pair of analyst downgrades.
Galileo Corp. (GAEO) plunged 5-1/4 to close at 3. That's a 63 percent selloff. The fiber-optic specialist said it is delinquent on a bank loan and the company expects to post a large loss in the current quarter.
Finnish cell phone giant Nokia (NOK.A) reported its net income jumped 63 percent in the latest quarter. Investors cheered, sending Nokia up 9 to 92 in New York trading.
Rival L.M. Ericsson (ERICY) will issue its earnings report on Monday. Ericsson shares rose 2-3/4 to 33-11/16 on Friday.
Avid Technology (AVID) rose 3-7/8 to 32-5/8 after the audio and video editing system maker beat earnings estimates by 4 cents a share.
BMC Software (BMCS) added 3-15/16 to 55 after the company beat earnings estimates by 3 cents a share and said it sees no signs of a slowdown. BT Alex. Brown and Merrill Lynch upgraded the stock.
Secure Computing (SCUR) rose 2-5/8 on the day, to close at 13-1/8. The company posted solid earnings and said future quarters will be just as good.
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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