Magazine article American Banker

Topsy-Turvy Friday Does in Tech Stocks

Magazine article American Banker

Topsy-Turvy Friday Does in Tech Stocks

Article excerpt

Bank technology stocks took a dive Friday, amid a general market drop and some sobering comments from Federal Reserve chairman Alan Greenspan.

Mr. Greenspan's comments, which suggested the markets have risen too quickly for their own good in recent weeks, fueled an early morning selloff as investors saw it as a sign the Fed might raise interest rates soon.

But fresh economic data from the Labor Department showed unemployment at a four-month high - suggesting no rate hike is imminent - and the market recovered some of its earlier losses.

The markets Friday were "a bit frothy," said Richard Weingarten a San Francisco-based analyst with Montgomery Securities.

He noted the technology-laden Nasdaq composite was in a particularly turbulent state, shedding 40 points or 3% at one point. For the week the index was off 12.42 points to close at 1,287.7.

Goldman, Sachs & Co.'s composite index of U.S.-traded technology companies lost 1.07 points to close at 119.27.

The stock of Cybercash Inc. bucked the downward trend, gaining $1.75 for the week to close at $27.

The rise follows the Reston, Va.-based company's announcement that it is developing a payment mechanism that works with Sun Microsystems Inc.'s Java Commerce tool kit.

Also, Cybercash's chief financial officer, Gene Riechers, said he will resign to become managing director of a new venture capital fund founded by Friedman Billings Ramsey & Co., Arlington, Va.

The fund, called Pegagus Venture Partners LP, will focus on technology companies in the Washington, D. …

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