The Week in Stocks and Funds
Pollyanna couldn't find much good to say about this market.
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.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.