Select Techs Wrecked
Tech stocks are under pressure Friday following a round of
weaker-than-expected earnings and quite a few negative warnings about future
quarters from some of the high-profile techs.
The Nasdaq futures are down 52 points, and the Dow futures are down 12
points.
The S&Ps look to open down 4.8 points while the yield on the 10-year
Treasury is 5.23%.
In economic news, December durable goods increased 2.2% versus the 1/4%
decline analysts had expected. A surge in aircraft orders accounted for the
rise.
Friday Movers
Wireless giant Qualcomm
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PowerRating) said it earned 29 cents per share for its
fourth quarter, beating First Call/Thomson Financial estimates by a penny.
Qualcomm closed Thursday at 73 15/16 and is trading up to 77 7/8 in pre-markets
activity.
Chip maker PMC Sierra
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PowerRating), which counts Cisco as its biggest
customer, posted earnings Wednesday of 34 cents per share that matched Street
estimates. The company warned, however, of a significant slowdown in first
quarter revenues, and that has hit the stock hard in Friday action. PMCS closed
Thursday at 95 15/16 and is trading down to 63 1/2 in pre-market activity.
Cisco
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PowerRating) is feeling some of PMC Sierra’s pain and is trading
down to 37 1/8 after closing Thursday down 3 5/16 to 39 5/16.
Also getting hit on earnings news is B2B company Broadvision
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PowerRating)
which posted earnings of 2 cents per share which was short of the 5 cent the
Street had expected. Broadvision closed Thursday at 15 and is trading down to 12
1/4 in pre-market activity.