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Dow off 77.07
Associated PressNEW YORK -- Technology stocks fell steeply today after Computer Associates International Inc. became the latest company to warn that profits won't meet expectations. An analyst's cautious outlook on the semiconductor industry added to the tech sector's woes. The Nasdaq composite index fell 128.83 to 3,863.10, its worst performance since May 23.
Blue-chip technology components weren't immune from the selloff. The Dow Jones industrial average fell 77.07 to 10,483.60, with IBM Corp. sinking $5.50 to $104 as the biggest contributor to the decline. The Standard & Poor's 500 index was down 23.09 to 1,446.23.
Advancers outnumbered decliners on the New York Stock Exchange, with 1,486 up, 1,445 down and 420 unchanged. Volume was 1.08 billion shares, slightly below average. The stock market was closed yesterday for Independence Day. The NYSE composite index fell 5.29 to 644.90, the American Stock Exchange composite index fell 21.69 to 921.71 and the Russell 2000 index lost 5.79 to 518.25. The 30-year Treasury bond rose 3/32 to 105 15/32; its yield fell 1 basis points to 5.86 percent.
Computer Associates plummeted $21.87 to $29.25, a 42.8 percent drop, after warning that its fiscal first-quarter results would badly miss expectations. The warning raised fears that other tech companies will also issue disappointing results when the earnings reporting season goes into full gear later this month. Sure enough, BMC Software Inc. said that fiscal first-quarter earnings will be 18 to 21 cents a share, compared with analysts' consensus of 46 cents. Its shares fell $14.19 to $21.31. Security software maker Entrust Technologies Inc. shares lost more than half its value, plunging $40.50 to $36.62, after an earnings warning. Oracle Corp. fell $7.87 to $72.31 after J.P. Morgan analyst William Epifanio downgraded the stock to "market performer" from "buy," citing concerns over Oracle's No. 2 executive stepping down last week.