(Adds after-hours drop in Bear Stearns stock in paragraph 8, volume in last two paragraphs)
Thu Mar 27, 2008 5:53pm EDT
By Ellis Mnyandu, Yahoo
NEW YORK, March 27 (Reuters) - U.S. stocks fell for a second day on Thursday as soft results from technology bellwether Oracle Corp (ORCL.O: Quote, Profile, Research) fed worry about a cutback in business spending, while bank shares fell on fears of another major casualty in the sector.
Oracle's weaker-than-expected revenue and cautious comments from its chief financial officer knocked the software maker's shares down 7.2 percent. That triggered a widespread sell-off of technology shares, including Apple Inc (AAPL.O: Quote, Profile, Research), which slid 3.3 percent.
Rumors that Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research) could suffer a fate similar to the near collapse of Bear Stearns (BSC.N: Quote, Profile, Research) pushed Lehman's shares down 8.9 percent. Lehman called the rumors "totally unfounded." [ID:nN27289860].
A 3.1 percent slide in Google Inc's (GOOG.O: Quote, Profile, Research) shares after Lehman slashed its price target on the Web search leader added to anxieties about tech stocks.
"Oracle came out with results that were a little light and their forward guidance was a little cautious," said James Rosenthal, head trader at Punk Ziegel & Co. in New York.
"Oracle is a very large company. It sells into a lot of different spaces, and if they are a little cautious and companies are waiting to make spending decisions, that will affect all businesses going forward for the next three to six months, and that's why techs are weak today."
The Dow Jones industrial average .DJI slid 120.40 points, or 0.97 percent, to end at 12,302.46. The Standard & Poor's 500 Index .SPX fell 15.37 points, or 1.15 percent, to finish at 1,325.76. The Nasdaq Composite Index .IXIC slumped 43.53 points, or 1.87 percent, to close at 2,280.83. Continued...
No comments:
Post a Comment