The Week in Stocks and Funds
Sun casts a shadow over tech stocks.
Remember the movie Groundhog Day, in which Bill Murray is forced to live the same day over and over, until he learns to become a better human being?
That may be how technology investors are feeling these days. Whenever tech stocks begin to show signs of life, a large tech company issues an earnings warning, states its future business outlook is murky, and takes down the entire tech sector with it. This week, Sun Microsystems (SUNW) played the role of market spoiler, announcing this quarter's sales and earnings will fall well short of expectations. The Nasdaq Composite dropped 4.3% that day alone, accounting for nearly all of the week's 4.5% loss. The Nasdaq finished the week at 2,149. The Dow Jones Industrial Average and S&P 500 indexes, which are less reliant on tech names, fared somewhat better. The Dow lost just 1% to 10,990, while the S&P 500 declined 1.3% to 1,260.
Scott Cooley does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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