- The 1900s are back. Any chance that last Friday's selloff on the Nasdaq was the capitulation traders had been looking for was wiped out when both indexes went lower right out of the gate yesterday.
The Nasdaq opened at 2004 in the US yesterday and fell from there. At of 11.09 am EST yesterday, the Nasdaq composite was at 1946.8, down 105.98 points or 5.16%. The Dow Jones Industrial Average also continues to swoon; it was down 2.2%. The S&P500's 33.5 point drop continues to show broader selling interest than just techs. The Industry Standard 100 continues its nosedive; the index, produced in conjunction with Epoch Partners, is down 27.97 points, to 386.28.
Leading the pack on the Nasdaq is a face familiar from the index's climb above 5000: Cisco Systems. Investors continue to abandon the router giant. The company officially joined the layoff fray late last Friday, when it announced that it would eliminate up to 5000 permanent jobs and 3000 temporary spots by July. Cisco competitors Foundry Networks, Juniper Networks, Redback Networks and Extreme Networks (EXTR) are also off significantly.
The Swedish mobile-phone company Ericsson rang in yesterday with its own earnings warning. A press release out of Stockholm notes that the company is now expecting a loss for the first quarter. The release notes the decline of capital expenditures in the US and a slowdown in investments by European operators. Ericsson's stock is off 16.4%.