Nasdaq fell for a fifth straight session...

Riz

Experienced member
1,266 5
Dow Jones 10645 +210
NASDAQ 2624 -28

Nas fell -28 for the fifth consecutive trade day...while Dow Jones made a huge gain of +210, helped by old-economy stocks... increasing hopes that Fed rates cuts may come sooner made the banks the biggest winners of the day...

Nasdaq's fall is mainly caused by investors continuing to ponder on the slower growth outlook for technology stocks...

Heavy losses were mainly in Internet and networking stocks caused by concerns over slower sales...a profit warning from America Online's merger partner, Time Warner, also didn't help....chip and software issues resisted the downtrend however...

Microsoft fell $1.38 to $47.81 to a new 52-week low having issued the second profit warning in its entire history...

Another big tech loser was Cisco Systems which fell 11 percent to $42.94, a fresh 52-week low, for saying late Friday that it would set aside more reserves to cover failures of some customers to pay bills...

Downgrades from Prudential Securities and Merrill Lynch caused Sun Micro a loss of "6.2 to $28.56...

"We continue to believe the stock market is drawing out a significant fundamental valuation bottom, especially in terms of tech and telecom stocks. But aside from an oversold rally here and there, the market lacks the confidence for an explosive rally from current levels that would likely be needed to pull itself out from the doldrums," said Brian Belski, fundamental market strategist at US Bancorp Piper Jaffray....

Richard Dickson, senior technical analyst at Scott & Stringfellow, said Friday's heavy trading volume -- though also attributable to triple-witching - may leave the market vulnerable to another test of the Nov. 30 low and possibly a move to a lower low. That said, he believes there's a good chance for a "bounce rally" from current levels that could develop into a year-end affair....

Looks like the worst is not over yet...

quotations from "Julie Rannazzisi, CBS.MarketWatch.com"

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