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Microsoft Corp.

U.S. Stocks Fall as Microsoft Warns of Stagnant Revenue

Strategic Insights

— 2 min read

U.S. stocks declined yesterday for the first time in a week as Microsoft's warning of stagnant revenue signaled potential tough times for the computer industry ahead. The Dow Jones industrial average fell 33.39 points to 9,143.33, with the Nasdaq Stock Market composite index, heavily weighted with computer shares, suffering its worst drop since March 5. Microsoft led the decline, down $4.37 to $94.50.

Key Takeaways:

  • The Dow Jones industrial average fell 33.39 points to 9,143.33, marking the first decline in a week.
  • The Nasdaq Stock Market composite index dropped 36.22 points to 1,881.39, its worst decline since March 5.
  • Microsoft led the decline, down $4.37 to $94.50, citing stagnant revenue due to Asia's financial problems and a possible slowdown in PC sales.
  • The company's market capitalization is $230 billion.
  • Bank shares also declined, losing gains from Wednesday, after Bankers Trust New York Corp. reported a $72 million loss in Asia in the first quarter.
  • Other banks, including Citicorp, Chase Manhattan, and BankAmerica, declined after rising on the announcement of Bank of New York Co. Inc.'s unsolicited bid for Mellon Bank Corp.
  • Canadian stocks were mixed, with BCE Inc. rising on stronger-than-expected earnings, while Telus Corp. shares fell amid concern over Bell's plans.
  • Canadian Pacific Ltd. rose for the second day after reporting a 2.3% increase in first-quarter profit.
  • Decliners outpaced advancers by 2,150 to 846 on active volume of 652 million shares on the New York Stock Exchange.
  • Bankers Trust New York Corp. reported non-performing assets rose $296 million since Dec. 31, mostly due to financial transactions in Indonesia and Thailand that went awry.

Statistics:

  • The Dow Jones industrial average fell 33.39 points to 9,143.33.
  • The Nasdaq Stock Market composite index dropped 36.22 points to 1,881.39.
  • Microsoft's market capitalization is $230 billion.
  • Bankers Trust New York Corp. reported a $72 million loss in Asia in the first quarter.
  • Non-performing assets rose $296 million since Dec. 31 for Bankers Trust New York Corp.
  • Decliners outpaced advancers by 2,150 to 846 on the New York Stock Exchange.
  • 652 million shares traded on active volume on the NYSE.

Sources:

  • Bloomberg News
  • Dow Jones industrial average
  • Nasdaq Stock Market composite index
  • Microsoft Corp.
  • Bankers Trust New York Corp.
  • Bank of New York Co. Inc.
  • Mellon Bank Corp.
  • BCE Inc.
  • Telus Corp.
  • Canadian Pacific Ltd.
  • New York Stock Exchange

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