U.S. Tech Stocks Down, European Markets Up

123jump.com Staff
09 Jul, 2008
New York City

Weekly crude oil inventories report suggested a lower than estimated supply of crude oil and crude oil inventories are hovering near the lower end of the range. Crude oil prices rebounded after the report and natural gas futures prices cut most of the losses. Separately, analysts commnets drove Cisco and Intel lower dragging tech heavy Nasdaq index with it. Boeing wins second opprtunity to bid for $35 billion tanker order.

[R]1:10 PM New York – Crude oil inventories report showed larger than expected supply drop. Middle East remains volatile. Tech stocks decline lead market averages lower.[/R]

Dow Jones Industrial Average fell 55.12 or 0.5% to 11,329.25, S&P 500 lost 5.6 or 0.45% to 1,268.00 and Nasdaq index dropped 16.71 or 0.7% to 2,277.54.

Weekly crude oil inventories report showed larger than expected decline in supply. Iran fired a missile based on technology provided by North Koreans in response to Israel war games conducted three weeks ago.

Stock Movers

Cisco Systems Inc. fell ahead of its earnings after cautious comments from Credit Suisse brokerage research on weaker than expected sales growth outlook for the networking company. Cisco fell 5% or $1.13 to $21.75. Cisco ((CSCO)) in the last one year traded as high as $34.08 in November 2007 and as low as $22.07 in July 2008. Based on the yesterday’s closing price the company has a market cap of $130.25 billion.

Intel fell on the weakness in tech stocks and lost 3% or 63 cents to $20.29. Intel Corp ((INTC)) in the last one year traded as high as $25.59 in December 2007 and as low as $24.00 in July 2008. Based on the yesterday’s closing price the company has a market cap of $698.79 billion.

Mattson Technology Inc fell 8% or 41 cents to $4.51 after it lowered its second quarter revenue to $35 million from previous estimate between $40 million and $42 million. Mattson Technology Inc ((MTSN)) in the last one year traded as high as $11.66 in July 2007 and as low as $4.30 in July 2008. Based on the yesterday’s closing price the company has a market cap of $212.24 million.

Chesapeake Energy fell 4% or $2.30 to $59.27 after said that it plans to sell 25 million shares of its common stock in a public offering. Chesapeake Energy Corp ((CHK)) in the last one year traded as high as $69.40 in July 2008 and as low as $69.40 in August 2007. Based on the yesterday’s closing price the company has a market cap of $31.71 billion.

S&P Movers

Of the stocks in S&P 500 index, 192 increased 306 declined and 2 remained unchanged.

National City Corp led the decliners in the S&P 500 index with a loss of 10.21% or $0.49, to $4.31 followed by in losses in Freddie Mac of 8.62% or $1.16, to $12.30, in CIT Group Inc of 5.99% or $0.51, to $8.00, in Fannie Mae of 5.96% or $1.05, to $16.57 and in MGIC Investment Corp of 5.07% or $0.38, to $7.12.

AK Steel Holdings led the gainers in the S&P 500 index with a rise of 9.41% or $4.83, to $56.18 followed by increases in Nucor Corp of 8.64% or $5.46, to $68.62, in US Steel Corp of 8.36% or $12.59, to $163.14, in Qlogic Corp of 8.17% or $1.14 to $15.10. Massey Energy Co of 7.52% or $5.55 to $79.36.

World Markets Review

The Nikkei 225 Index in Tokyo closed higher 19.03 or 0.15% to 13,052.13, Hang Seng index in Hong Kong increased 585.00 or 2.76% closed to 21,805.81. ASX 200 index in Australia increased 79.00 or 1.60% to close 5,011.90. The KL Composite index in Malaysia increased 18.56 or 1.66% closed to 1,139.81.

The Kospi Index in South Korea decreased 14.09 or 0.92% to close at 1,519.38, SET index in Thailand closed lower 1.37 or 0.19% to 721.13 and JSE Index in Indonesia increased 7.05 or 0.31% to 2,286.03. The Sensex index in India increased 614.61 or 4.60% to 13,964.26.

In London FTSE 100 Index closed higher 89.10 or 1.64% to 5,529.60, in Paris CAC 40 Index increased 64.05 or 1.50% to close at 4,339.66 and in Frankfurt DAX index higher 82.05 or 1.30% to close at 6,386.46. In Zurich trading SMI increased 133.31 or 1.96% to close at 6,921.44.