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CNNfn tech stock report
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September 29, 1998: 4:56 p.m. ET
Nasdaq falls on hopes of bigger rate cut before recovering most of loss
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NEW YORK (CNNfn) - Hopes that the Federal Reserve would cut a key interest rate by more than a quarter of a point sent tech stocks lower early Tuesday afternoon. However, just before the close, techs recovered much of their losses to end down only slightly.
The Nasdaq Composite ended off 5.17 to 1,734.05 on volume of about 780 million shares. Declines beat advancers by about an 11-to-8 margin.
Direct computer retailer PC Connection Inc. (PCCC) plunged 10-11/16 to 9-5/16 after the company warned third-quarter earnings and revenue will be hurt by a software conversion and product shortfalls.
Another big loser was Britain's CBT Group PLC (CBTSY) which shed 4-1/4 to 10-15/16. The world's largest maker of computer training programs warned late Monday it will miss third-quarter earnings expectations. CBT recently lost an order worth up to $6 million.
Another overseas loser was France Telecom SA (FTE), whose American depositary receipts fell 2-7/8 to 61-1/8. France Telecom is set to sell about $6 billion in new stock over the next few weeks.
Computer networking company Fore Systems Inc. (FORE) dropped 3-1/4 to 15-15/16 as investors voiced fears the company will miss its earnings target of 14 for its fiscal second-quarter which ends Wednesday.
Shares of Northern Telecom Ltd. (NT) fell 4-7/8 to 35-7/8 after the company warned analysts that third-quarter earnings would fall short of estimates.
Shares of cable and entertainment company Viacom Inc. (VIA) dropped 6 to 56-3/4 after the company warned higher marketing and promotion expenses would hurt third-quarter growth.
Micron Electronics Inc. (MUEI) shares climbed 1-3/16 to 18-1/8 after releasing better-than-expected earnings for its fiscal fourth quarter.
Other computer makers were mixed with Dell Computer Corp. (DELL) losing 1/4 to 67-13/16, Gateway Inc. (GTW) climbing 2-1/2 to 56 and Compaq Computer Corp. (CPQ) rising 3/8 to 33-3/16.
Software giant Microsoft Corp. (MSFT) was one of Tuesday's climbers, adding 1-9/16 to 112-7/8. A new study by International Data Corp. said Microsoft's Exchange mail program captured more new users in the first half of 1998 than IBM Corp.'s Lotus Notes. IBM (IBM) shares lost 2-3/16 to 131-7/16.
Database company Oracle Corp. (ORCL) gained 15/16 to 29-1/16 on news it was building new database software for mobile computers.
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 Microsoft NetShow. 
--by staff writer Cyrus Afzali
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