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Semiconductor industry

Wall Street Woes: Tech Giants Post Disappointing Earnings

Strategic Insights

— 1 min read

Wall Street was in a state of panic Tuesday as tech industry leaders Intel and IBM posted their earnings, causing a ripple effect throughout the market. The Dow Jones Industrial Average closed down 149.09 points, or 1.46 percent, to 10,089.71, while the Nasdaq plummeted 2.32 percent to 3,213.79. The Standard & Poor's 500 fell 24.65 points to 1,349.97, and the American composite was off 6.70 points to 900.90. The decline was attributed to concerns over the softness in Internet advertising, which sent Yahoo! plummeting $5.86 to $49.39, and partner Time Warner dipping $11.79 to $66.01.

Key Takeaways:

  • Intel's earnings were 41 cents a share, three cents better than estimates.
  • IBM's earnings were $1.08 a share, in line with analysts' estimates.
  • The Dow Jones Industrial Average closed down 149.09 points, or 1.46 percent, to 10,089.71.
  • The Nasdaq was off 76.49 points, a 2.32 percent decline, to 3,213.79.
  • Concerns over the softness in Internet advertising sent Yahoo! down $5.86 to $49.39.
  • American Express lost $2 to $53.75, despite beating estimates on earnings.
  • Caterpillar, despite a good earnings report, was down $1.25 to $30.50.
  • The Treasury markets gained, with the 10-year note up 14/32 to 100 18/32, with a yield of 5.67 percent, down from 5.73 percent previously.

Statistics:

  • Intel's earnings beat estimates by 3 cents per share.
  • IBM's earnings were $1.08 a share, in line with analysts' estimates.
  • The Dow Jones Industrial Average closed down 149.09 points, or 1.46 percent, to 10,089.71.
  • The Nasdaq was off 76.49 points, a 2.32 percent decline, to 3,213.79.
  • Yahoo!'s stock price fell $5.86 to $49.39.
  • American Express stock price lost $2 to $53.75.
  • Caterpillar's stock price dropped $1.25 to $30.50.

Sources:

  • Dow Jones Industrial Average
  • Nasdaq Composite Index
  • Standard & Poor's 500 Index
  • Yahoo!
  • America Online
  • Time Warner
  • Micron Technology
  • J.P. Morgan
  • Citigroup
  • American Express
  • Caterpillar
  • Hewlett-Packard
  • Home Depot
  • GE
  • Johnson & Johnson
  • Merck
  • SBC Communications
  • Treasury markets
  • Russell 2000 smallcap index
  • Wilshire 5000 Total Market Index

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