Nokia upended tech stocks Tuesday with an unexpected revenue warning.
Shares of Nokia plunged 19% after the company said first-quarter sales will decline 2%, well under estimates for a 3-7% rise.
The miss apparently was due to a market miscalculation by Nokia, which overemphasized low-end models at the expense of more popular midrange models. Partners RF Micro Devices and Texas Instruments
lost 6-7% on the news.
The Nasdaq fell 19 to 2059, the S&P 500 lost 2 to 1148, and the Dow rose 12 to 10,570. Volume was unchanged at 1.4 billion shares on the NYSE, and rose to 1.81 billion on the Nasdaq. Decliners led 21-12 on the NYSE, and 21-10 on the Nasdaq. Downside volume was 61% on the NYSE, and 67% on the Nasdaq. New highs-new lows were 189-44 on the NYSE, and 180-15 on the Nasdaq.
After the close, Seagate warned.
During the day, Yahoo lost 2% on a Schwab Soundview downgrade based on overvaluation of Yahoo Japan shares. Yahoo reports earnings after the close Wednesday.
Research in Motion , which also reports tomorrow, rose 3%.
Brooktrout , Marimba
, E.piphany
, eDiets.com
and Digital Impact
all plunged 19% or more on earnings warnings.
Mamma.com fell 10% on an SEC inquiry into trading activity in the company’s shares.
Market Commentary: For our free daily market commentary and technical analysis, please visit the InternetStockReport.com home page at:
http://www.InternetStockReport.com.
