Technology Stocks Plummet as Dow Jones U.S. Technology Index Drops 2.75%

As the stock market neared the end of trading on August 11, 2010, technology shares plummeted, with the Dow Jones U.S. Technology Index experiencing a 2.75% decline to 561.61. The index had previously traded as low as 559.75, indicating a volatile day for tech stocks. Google Inc. (GOOG) announced plans to sell advertising spots on 11 cable networks carried by DirecTV, while Broadcom (BRCM) faced a decline after a note from Robert W. Baird predicted a potential deceleration in orders.

Key Takeaways:

• The Dow Jones U.S. Technology Index dropped 15.88 points to 561.61, a decline of 2.75%.
• Google Inc. (GOOG) announced plans to sell advertising spots on 11 cable networks carried by DirecTV, citing a Reuters report.
• Broadcom (BRCM) saw a decline after a note from Robert W. Baird predicted a potential deceleration in orders and the company's inability to exceed revenue forecast.
• MSFT declined by 4.5%, AAPL by 3.5%, IBM by 1.4%, and CSCO by 3.0%.
• The Comtex SmarTrend Alert system indicated a DOWNTREND for AAPL on July 19, 2010, and UPTRENDs for BRCM on July 9 and July 14, 2010.
• Tech stocks experienced significant volatility, with the Dow Jones U.S. Technology Index trading as low as 559.75 before recovering.

Statistics:

• The Dow Jones U.S. Technology Index declined 15.88 points, representing a 2.75% drop.
• Google Inc. (GOOG) shares dropped 2.3% to $492.35.
• Broadcom (BRCM) shares declined 6.67% to $33.60 in late trading.
• MSFT, AAPL, IBM, and CSCO all experienced losses, ranging from 1.4% to 4.5%.
• The Comtex SmarTrend Alert system indicated a DOWNTREND for AAPL on July 19, 2010 (price: $244.74).
• UPTRENDs were indicated for BRCM on July 9, 2010 (price: $36.22) and July 14, 2010 (price: $23.64).

Sources:

• MidnightTrader (2010, Aug 11)
• Comtex News Network, Inc. (2004-2010)
• Reuters (2010)
• Robert W. Baird (2010)
• www.mysmartrend.com (Comtex SmarTrend Alert)