“Technology stocks crashed Wednesday in the wake of fresh worries about the economy, pushing the Nasdaq Composite Index down below the 1,500 mark for the first time in more than five years,” Rex Crum reports for MarketWatch.
“By the closing bell, the Nasdaq had plunged more than 5% to 1,499.21. The index has not closed below the 1,500 mark since May 21, 2003,” Crum reports.
“The Dow shed more than 400 points by the close. The sell-off was sparked by a warning from electronics giant Best Buy Co., which cut its earnings outlook for 2009. The company’s chief executive said the current weakness in consumer spending was creating ‘the most difficult climate we have ever seen,'” Crum reports.
“The warning from Best Buy spooked shareholders for many leading personal-computer and electronics companies. Apple Inc. (AAPL: 90.12, -4.65, -4.9%) , Dell Inc. (DELL: 10.50, -0.83, -7.3%) and Hewlett-Packard Co. (HPQ: 31.14, -2.11, -6.3%) sell their products as Best Buy stores, and Calyon Securities analyst Shebly Seyrafi said those companies will feel some impact,” Crum reports. “‘Clearly this development, along with Circuit City’s bankruptcy, is negative for these companies,’ he said.”
Crum reports, “Shares of Google slid under the $300 mark for the first time since October of 2005 as analysts cut back their estimates for the company, citing worries about the slowing advertising market.”
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MacDailyNews Note: In After Hours trading, Apple (AAPL) is currently trading at $87.77, down $2.44, or -2.70%, on volume of 261,458 shares.