CNNfn tech stocks report
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August 28, 1998: 5:47 p.m. ET
Technology shares take it on the chin again, losing almost 50 points
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NEW YORK (CNNfn) - Technology stocks turned in another loss Friday, dropping 46 points to bring the Nasdaq Composite's total decline to 8.5 percent for the week..
The Nasdaq finished down 46.73 to 1639.68 on volume of almost 891 million shares. Declines beat advancing issues by more than 2-to-1.
Internet stocks were responsible for a big part of the loss, led by America Online Inc. (AOL), which fell 8-3/4 to 96-1/4 after Banyan Systems Inc. (BNYN) -- which owns the online phone directory Switchboard.com -- said it would not renew a contract to provide listings to the online service. Banyan fell 1-3/8 to 3.
Online bookseller Amazon.com Inc. (AMZN) fell 13-1/8 to 105-7/8, search engine designer Inktomi Corp. (INKT) plunged 11-23/32 to 60-1/16 and Internet community GeoCities (GCTY) lost 4-3/4 to 22-3/8. Online music store CDNow Inc. (CDNW) lost 2-1/8 to 8-1/2.
The search engines didn't fare any better, with Yahoo! Inc. (YHOO) falling 8 to 83-1/16, Lycos Inc. (LCOS) losing 4-3/8 to 29-7/8, Excite Inc. (XCIT) dropping 3-7/8 to 30-9/16 and Infoseek Corp. (SEEK) shedding 2-9/16 to 21-3/16.
There were also losses across the board among the larger computer manufacturers. Gateway Inc. (GTW) lost 2 to 53-3/8, Dell Computer Corp. (DELL) dove 6-5/16 to 118-3/4, IBM Corp. (IBM) dropped 2-11/16 to 122-9/16 and Compaq Computer Corp. (CPQ) sank 2 to 30-1/2.
Ameritrade Holdings Corp. (AMTD), parent of online broker Ameritrade, lost 1-5/8 to 16-7/8 after the company warned it would break even or only post a small profit in the first two quarters of fiscal 1999. Officials attributed the profit decline to increased ad spending.
Computer Learning Centers Inc. (CLCX) plunged 7-13/32 to 5-31/32 after warning its earnings will be significantly lower than expectations. The computer school company blamed the decline on falling enrollment.
Shares of MRV Communications Inc. (MRVC) plunged 7-9/16 to 6-13/16 after the telecommunications equipment maker said third-quarter earnings will be lower than analysts' estimates.
The merger of Ciena Corp. (CIEN) and Tellabs Inc. (TLAB) took another twist Friday. Tellabs announced it had renegotiated the terms of the deal, which is now worth $4.7 billion, down from about $7 billion.
Ciena shares added 4-1/2 to 35-5/16 and Tellabs lost 8-13/16 to 49.
Telecom equipment maker DSC Communications Corp. (DIGI) gained 2-7/8 to 25-1/4 after shareholders approved a $3.4 billion buyout bid from France's Alcatel Alsthom.
Regional telephone company Bell Atlantic Corp. (BEL) added 1-13/16 to 45 after Lehman Brothers reiterated its "buy" rating on the stock. Lehman cited low overseas exposure for the decision.
Lucent Technologies Inc. (LU) dropped 1-13/16 to 80-7/8 after agreeing to sell its Bell Labs Design Automation Group to Cadence Design Systems Inc. (CDN). Terms were not disclosed.
Shares of Internet publisher CNET Inc. (CNWK) gained 1-3/8 to 42-7/8 after BankAmerica Robertson Stephens reiterated a "buy" rating.
Finally, enterprise software maker J.D. Edwards & Co. (JDEC) jumped 5-1/2 to 41-7/16 after Lehman Brothers upgraded the stock to a "buy" and Morgan Stanley Dean Witter increased its rating to "strong buy."
--by staff writers Cyrus Afzali and Brendan Hasenstab
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