Tech stocks sink on Cisco concerns, Fed’s economic worries

“U.S. stocks extended losses for a second day Thursday after Federal Reserve Chairman Ben Bernanke painted a perilous economic outlook and worries about Cisco Systems Inc.’s quarter helped fuel a sell-off in the technology sector,” Kate Gibson reports for MarketWatch.

“At 2 p.m. Eastern, the Dow Jones Industrial Average ($INDU: 13,132.00, -168.02, -1.3%) was off 121.9 points, or 1%, to 13,175.2, with 18 of its 30 components lower. American International Group Inc. (AIG: 54.52, -3.38, -5.8%) and IBM (IBM: 105.15, -5.93, -5.3%) fronted the slide, with both blue chips down nearly 6%. The S&P 500 ($SPX: 1,458.54, -17.08, -1.2%) fell 12.63 points, or 0.8%, to 1,462.99, while the Nasdaq Composite (COMP: 2,669.16, -79.60, -2.9%) fell 69.13 points, or 2.6%, to 2,679.63,” Gibson reports.

“Shares of Cisco (CSCO: 30.03, -2.72, -8.3%) shares fell 8.1%. Late Wednesday, the tech bellwether reported a 37% increase in first-quarter profit yet still sparked concern with a forecast implying that it won’t meet Wall Street expectations for the current quarter,” Gibson reports. “Cisco was pegged for sparking a decline in technology stocks at large.”

“Big losses in Google Inc. (GOOG: 691.13, -41.81, -5.7%) , Research in Motion Ltd. (RIMM: 121.42, -11.61, -8.7%) and Apple Inc. (AAPL: 174.50, -11.80, -6.3%) reflect an increase in risk aversion, on a global scale, as investors reassess their willingness to hold risky assets all the way from Shanghai to Wall Street,” said Frederic Ruffy, analyst at Optionetics,” Gibson reports.

“In prepared testimony to the Joint Economic Committee of Congress, Bernanke said the economy faces risks from the housing market’s slump as well as from a possible surge in inflation, the lower dollar and higher oil costs. Read The Fed,” Gibson reports. “Bernanke’s comments further fueled worries about the extent of the credit crunch and subprime-related mortgage problems plaguing banks and other financial institutions.”

Full article here.

61 Comments

  1. If AAPL at 191 was too rich for your blood, AAPL at 175 is a bargain and a great opportunity to get in before the Jan-17-2008 earnings for Christmas quarter are announced.

    Germany is projecting sellouts of iPhones and it is no doubt AAPL will have a STELLAR quarter. (that is saying something as ever quarter for the past 3 years has been STELLAR)

  2. “Imagine how well AAPL would be doing if Bush hadn’t f*cked up our country in just about every way possible.”

    Don’t blame him, blame the people who support him and the people who backed his campaigns. I don’t think the man himself has enough smarts to fsck up a wet dream.

  3. Bush? Is everything unpleasant in the world going to be blamed on him?

    Perhaps all children would be above average if he hadn’t been president. Perhaps I’d be taller and more muscular if he hadn’t been president. Perhaps winter days would be longer and the wind wouldn’t blow so much if he hadn’t been president.

    Sounds like someone needs counseling and medication before causing a stroke the blocks the flow of blood to the ten remaining brain cells.

    Can we stick to Apple topics instead of politics? We’ll have quite enough exposure to politics in the months ahead. I’m already getting nauseated.

  4. The whole reason for this current economic concern is because Bush has been f*cking everything up in this country, and the bill is due. Anyone who isn’t nervous because of Bush’s actions since he’s been president is not paying attention. That’s why the stocks are behaving as they are – RIGHT NOW. The bet isn’t IF the economy will enter a recession based on Bush’s failure’s as a president, but WHEN.

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