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Market Update

The Week in Stocks and Funds

Pollyanna couldn't find much good to say about this market.

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Under the weight of earnings warnings from bellwethers such as Nortel Networks  (NT), JDS Uniphase  (JDSU), and Nokia  (NOK), the technology sector plummeted last week, taking the broad-based indexes with it. For the week, the Nasdaq Composite index lost about 10% to 2,028. The Dow Jones Industrial Average fared a bit better, falling about 4% to 10,623, while the S&P 500 dropped 4.5% to 1,214.

Fund Category Returns
Specialty-technology funds were pummeled last week. For the five trading days through Thursday, the average fund in the category lost 13% of its value. Berkshire Technology (BTECX) lost 23% on the week, as faltering networking stocks such as Ciena  (CIEN) and Juniper Networks  (JNPR) were among its big losers.  Juniper issued an earnings warning last Friday that, along with Nortel Networks' and JDS Uniphase's predicted profit shortfalls, hit the entire networking area hard. Kinetics Internet (WWWFX) was one of the tech category's best performers for the week, falling just 4%. Of course, as senior analyst Christopher Traulsen points out in his analysis of the fund, the portfolio performs well in tech sell-offs because it has held a lot of cash and nontech stocks.

Scott Cooley does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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