Tech stocks slow market's surge
NEW YORK — A bad day for technology stocks on Friday slowed a recent surge in the stock market.
Microsoft led the slump in tech, falling the most in more than four years as the company wrote off nearly $1 billion on its new tablet computers and reported declining revenue for its Windows operating system.
Google dropped as it reported its revenue fell below analysts' forecasts, partly because the Internet search leader's ad prices took an unexpected turn lower.
With tech stocks falling, the Standard & Poor's 500 index eked out a gain of 2.72 points, or 0.2 percent, to an all-time high of 1,692.09. The S&P 500 has rebounded after a decline last month and is up 5.3 percent in July.
Despite the market's broad advance, a growing list of poor tech results is raising concerns about the strength of the economy and the stock market. Intel and eBay reported weak results this week, and chipmaker Advanced Micro reported a second-quarter loss because of a worldwide slump in PC demand.
Technology “has definitely been a sector that people have been expecting big things from, and it has not delivered,” said Randy Frederick, managing director of active trading and derivatives at the Schwab Center for Financial Research.
The Dow Jones industrial average closed down 4.80 points, or 0.03 percent, to 15,543.74. If not for the declines in Microsoft, Hewlett-Packard and IBM, the index would have gained about 70 points.
Even General Electric's brighter outlook for the economy was overshadowed by the tech slump.
The technology-heavy Nasdaq composite fell 23.66 points, or 0.7 percent, to 3,587.61. The index was the only major market benchmark to end the week lower, falling 0.4 percent.
Technology stocks in the S&P 500 have lagged this year, gaining only 8.5 percent, versus 18.6 percent for the broader index.
The yield on the 10-year Treasury note fell to 2.48 percent from 2.53 percent Thursday.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Bond mutual funds continue to carry their weight
- First Niagara sets aside $45 million
- Amazon investors’ patience wears thin
- Sell-off reins in complacency
- Toyota Yaris adds French flair for ’15
- Mini goes mainstream
- Motoring Q&A: ‘Check engine’ light doesn’t reset itself
- Stocks rise broadly on earnings; Amazon sinks
- Rule to close coal royalty loophole
- Education Management removes itself from Nasdaq listing
- EQT Corp. boosts profits despite lower gas prices