CNN/Money  
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Markets & Stocks
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Not a promising beginning
Warning from Applied Materials chips away at Nasdaq, while Dow, S&P 500 drift amid cross-currents.
January 31, 2003: 9:44 AM EST

NEW YORK (CNN/Money) - The Nasdaq declined early Friday after chip gear maker Applied Materials warned that orders in its first-quarter will come in worse than expected, while the broader market drifted in fickle trade.

Around 9:35 a.m. ET, the Nasdaq composite (down 12.07 to 1310.28, Charts) lost 1 percent, while the Dow Jones industrial average (down 5.62 to 7939.51, Charts) and the S&P 500 index (down 3.48 to 841.13, Charts) both hovered near unchanged.

The entire technology sector was under pressure after chip gear maker Applied Materials (AMAT: up $0.03 to $12.98, Research, Estimates) warned that first-quarter orders won't meet the current estimates of analysts or the company's own previous guidance, due to the continued weakness in technology spending. The firm expects first-quarter orders to be down 35 percent from a year earlier, when previously it said orders would only be down 20 percent.

Shares of fellow chipmakers Intel (INTC: down $0.55 to $15.24, Research, Estimates), KLA-Tencor (KLAC: down $2.29 to $31.46, Research, Estimates) and Novellus (NVLS: down $1.72 to $28.18, Research, Estimates) were among the other stocks declining on the news.

Dow component Honeywell (HON: Research, Estimates) reported results of 50 cents a share in the fourth-quarter, in line with estimates, but down from the 55 cents it earned a year earlier. However, the aircraft parts manufacturer warned that current quarter results won't meet expectations.

Even amid so much corporate news, concerns remained about the potential for war with Iraq and how it might disrupt the global economy as well as oil prices.

The negative news overshadowed the days economic reports showing personal spending and personal income growth remained strong. The reports might have normally been taken as a hopeful sign for investors as it implies consumer spending, the biggest sector of the economy, has held up.

Tokyo stocks closed higher Friday; several Asian markets were closed Friday for the lunar new year celebration. European markets were lower in midday trading.

Treasury prices turned higher, sending the 10-year note yield down to 3.95 percent from 3.97 percent late Thursday. The dollar was little changed against euro and rose versus the yen.

Brent oil futures rose 1 cent to $31.22 a barrel in London. Gold was up to about $370 an ounce.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.