News Whacks Tech Funds
The market
continued its news-driven ways Friday as stocks sagged on
earnings warnings from Swedish telecom Ericsson
(
ERICY |
Quote |
Chart |
News |
PowerRating)
and testing equipment maker Agilent Technologies
(
A |
Quote |
Chart |
News |
PowerRating).
The Semiconductor
HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) fell 4.1%, breaking below its 50-day moving
average on active trade. It was the semiconductor basket’s
fourth straight loss. Once again, the tradable fund closed
near the low of the day. It now is threatening support at 88
1/8 (see black arrow in chart).
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Chipmakers,
already suffering distribution, took another hit after
Ericsson warned of trouble in its handset business. That led
traders to raise questions about the telecom industry as a
source of reliable demand for chip manufacturers. For more
on Ericsson, see my
The News commentary.
The B2B Internet
HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) lost 5.8%, the sharpest loss among the
exchange-traded funds. The Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating)
fell 4.1%, the Dow Jones Internet Index iShares
(
IYV |
Quote |
Chart |
News |
PowerRating)
4.0%, the Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 3.6%, the Nasdaq 100
Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) 2.9%.
The Consumer
Services SPDR
(
XLV |
Quote |
Chart |
News |
PowerRating) shed 2.5%. Among its largest
components, Walt Disney
(
DIS |
Quote |
Chart |
News |
PowerRating) lost 1 3/16 to 37 7/16,
while Time Warner
(
TWX |
Quote |
Chart |
News |
PowerRating) shed 2 3/16 to 83.
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The market seemed
to say that Greenspan’s Thursday remarks were good for just
a one-day pop. On Friday, the Financial SPDR
(
XLF |
Quote |
Chart |
News |
PowerRating) came
out strong but by the end of the day closed off 0.2% and
below the open.
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The Energy SPDR
(
XLE |
Quote |
Chart |
News |
PowerRating)
slumped 1.9%, cracking below support at 29 1/4 (
General Lukman said the cartel would raise crude oil
production in concert with Saudi Arabia. The August unleaded
gasoline contract
(
HUQ0 |
Quote |
Chart |
News |
PowerRating) lost 5%. TradingMarkets’
Futures Editor Marc Dupee dissects a completed
head-and-shoulders pattern in the contract in Friday’s
Market Recap column.
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On the upside, the
Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating) continued to show strength, gaining
2.5% within a consolidation range.
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