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Inflation fears hit techs
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October 15, 1999: 4:28 p.m. ET
Tech issues drop across the board as producer price increase spooks investors
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NEW YORK (CNNfn) - Technology shares plummeted Friday amid renewed inflation fears that put heavy pressure on the broader market.
The technology-heavy Nasdaq composite index dropped 75.05 to close at 2731.79, according to preliminary results.
Stocks fell across the board after the Producer Price Index, the main indicator of inflation on the wholesale level, posted its largest increase in nine years in September.
"This morning's PPI would suggest to us in all likelihood, the market has yet seen its bottom, and it's probably headed lower," said Clark Yingst of Prudential Securities.
Internet shares were hit especially hard, with Doubleclick (DCLK) dropping 14, or 11 percent, to 113-1/2, even after the Internet advertising firm reported a narrower-than-expected third-quarter loss.
TheGlobe.com (TGLO) tumbled 2-9/16, nearly 19 percent, to 11-1/16 after the online network warned analysts that it would miss third-quarter earnings estimates because of product delays.
Bear Stearns cut its rating on the TheGlobe.com's stock to "neutral" from "attractive."
Other Internet shares under pressure included Xoom.com (XMCM), which dropped 6-1/16 to 54-7/8, and America Online Inc. (AOL), which lost 5-3/4 to 109-1/4.
Sun Microsystems Inc. (SUNW) was able to escape the carnage, rising 3-5/32 to 92-9/16 after the firm reported stronger-than-expected first-quarter earnings.
Among blue-chip tech issues, Microsoft Corp. (MSFT) fell 2-5/8 to 88-1/16, AT&T (T) lost 1-1/2 to 43-3/16 and Cisco Systems Inc. (CSCO) dropped 2-3/16 to 67-3/16.
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