Newspaper article THE JOURNAL RECORD

Stock Barometers Decrease

Newspaper article THE JOURNAL RECORD

Stock Barometers Decrease

Article excerpt

NEW YORK (AP) -- Stocks fell sharply Monday, sending the Nasdaq Composite index down more than 100 points, as reports from two companies suggested that second quarter earnings won't meet Wall Street's high expectations.

An earnings warning from Citrix Systems, a maker of computer network products, helped give the Nasdaq its worst loss since May 23. Meanwhile, Home Depot hurt the Dow Jones industrials after a Wall Street analyst said rising interest rates are taking a toll on sales.

The Nasdaq ended the day down 106.93 at 3,767.91. Since it lost 199 points on May 23, the index had been staging a gradual recovery.

The Dow fell 49.85 to close at 10,564.21, and the Standard & Poor's 500 index was down 10.95 at 1,446.00. Both indexes gave up early gains.

Trading was light, convincing analysts that investors are trading cautiously in advance of several government reports on the economy due out later this week.

"It's an orderly market, but not a market with a great deal of conviction," said Alan Ackerman, senior vice president at Fahnestock & Co. in New York.

Citrix set the tone for the Nasdaq, warning that its earnings will miss estimates in the coming quarter. The company said expansion of its core business in large enterprise accounts is taking place slower than expected. Its shares plunged 47 percent, or by $19.188, to $22, and Edward M. Kerschner, chief investment strategist at PaineWebber, removed the stock from his firm's "Highlighted Stocks" list.

The profit warning from Citrix tempered good news from Corning, which rose $21.625 to $233.625 after the fiber-optics company said it anticipates earnings for the second quarter to be 78 cents to 80 cents a share, well above analysts' estimates of 69 cents a share.

Corning expects profits to come in about 50 percent above last year's second-quarter totals.

Other technology stocks that sustained sharp losses: Harmonic, which lost $18.688 to $38.75 and MicroStrategy, which fell $23.313 to $38.938.

Home Depot fell $1.938 to $46.063 after a Robinson-Humphrey analyst lowered his estimate for second quarter same-store sales. Analyst Mark Mandel lowered his expectations after meeting with Home Depot management on Friday, and said rising interest rates appear to be hurting business. …

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