Techs pace declines in major averages

Techs pace declines in major averages

Earnings continue to pour in

NEW YORK (CBS.MW) – Tech stocks led on the downside Monday, sending the
Nasdaq lower for a second straight session. The Dow Industrials also contended
with losses, primarily in its tech components.

The Dow Jones Industrial Average ($DJ) lost 40 points, or 0.4 percent, to
10,539.

The Nasdaq Composite ($COMPQ) shed 57 points, or 2.7 percent, to 2,106 while
the Nasdaq 100 Index ($NDX) gave up 61 points, or 3.1 percent, to 1,873.

The Standard & Poor’s 500 Index ($SPX) fell 0.7 percent while the Russell
2000 Index ($RUT) of small-capitalization stocks dropped 0.7 percent.

Volume came in at 63.4 million on the NYSE and at 151 million on the Nasdaq
Stock Market. Market breadth was negative, with decliners outnumbering advancers
by 12 to 10 on the NYSE and by 17 to 10 on the Nasdaq.

By the end of the week, 25 of the 30 Dow companies and 350 S&P 500
companies will have reported, according to First Call/Thomson Financial. With 47
percent of S&P 500 companies having reported, the earnings compiler said 57
percent have surpassed expectations. That’s right around the seven-year average
of 58 percent. The earnings compiler also said 30 percent of companies have met
expectations — more than the typical 20 percent — primarily because the number
of negative pre-announcements for the first quarter reached record levels.

Elsewhere, Trim Tabs noted that U.S. equity funds saw an estimated $3.3
billion in inflows in the three days ended April 19 for a monthly rate of $22.1
billion. But the fund flow tracker said only a handful of new offerings came
public and that cash takeovers and stock buybacks were also slower than
anticipated last week.

Individual stock action

Oracle (ORCL) lost $1.68 to $18.09. Lehman Brothers lowered its rating on
Oracle to a “buy” from a “strong buy,” indicating that the stock is now trading
at a “significant premium” following the recent rally.

On the earnings front, four Dow stocks reported results before the opening
bell.

Exxon Mobil (XOM) posted a first-quarter profit from operations of $1.44 a
share, beating the First Call/Thomson Financial estimate of $1.35 a share and up
51 percent from the year-ago quarter. The stock rose 1.3 percent.

SBC Communications (SBC) posted a first-quarter profit from operations of 51
cents a share, in line with expectations. Citing weakening economic conditions
in the U.S., the company said it expects a profit excluding items of $2.35 to
$2.45 a share for 2001, below Wall Street expectations for earnings of $2.46.
Shares fell 2 percent.

3M (MMM) posted first-quarter earnings of $1.16 a share, in line with the
First Call estimate. The company said it expects full-year 2001 EPS of $4.75 to
$5.00. First Call currently pegs 2001 EPS at $4.98 a share. The company also
said it would reduce its global workforce by 7 percent, or 5,000 positions, over
the next 12 months. Shares erased 0.5 percent.

Finally, American Express (AXP) reported a profit of 40 cents a share,
surpassing the Wall Street consensus estimate by a penny and up 18 percent from
the year-ago quarter. The company reaffirmed that EPS growth for 2001 was
unlikely to meet its earlier target of 12 percent due to weakness in the economy
and equity markets. The stock lost 1 percent.

Treasury action

Government prices gained additional ground as equity prices retreated.

The 10-year Treasury note swelled 12/32 to yield ($TNX) 5.24 percent while
the 30-year government bond added 15/32 to yield ($TYX) 5.76 percent.

No economic news is due out for Monday. The highlights on the week’s calendar
include April consumer confidence, March durable goods orders, March new home
sales, March existing home sales, the first-quarter employment cost index and
the advance reading of first-quarter gross domestic product. View Economic
Preview and economic calendar and forecasts.

In the currency arena, dollar/yen inched down 0.2 percent to 121.64 while
euro/dollar edged up 0.1 percent to 0.9014.