(Updates to early morning)
By Ellis Mnyandu
NEW YORK, Nov 9 (Reuters) - U.S. stocks slid on Friday as
investors pummeled shares of financial services companies after
another U.S. bank warned of large credit losses and concern
about technology profits hurt major names such as Apple Inc
<AAPL.O>.
The latest disappointment among tech shares, which until
recently had been a bright spot for the market, came from
Qualcomm Inc <QCOM.O>, the wireless technology developer, which
forecast 2008 earnings and revenue below analysts' expectations
late on Thursday. For details, see [ID:nN08264266].
Wachovia Corp <WB.N>, the fourth-largest U.S. bank, said it
had incurred about $1.1 billion of losses on mortgage
securities in October and expected loan loss provisions of up
to $600 million, further reducing earnings. [ID:nN09443318].
Wachovia shares dropped 3.5 percent and contributed to a
1.4 percent slide in the S&P financial index <.GSPF>.
"The general feeling is that we're still in the woods. We
haven't recovered from this subprime issue," said Cleveland
Rueckert, market analyst at Birinyi Associates Inc. in
Stamford, Connecticut.
The Dow Jones industrial average <.DJI> was down 125.35
points, or 0.94 percent, at 13,140.94. The Standard & Poor's
500 Index <.SPX> was down 16.60 points, or 1.13 percent, at
1,458.17. The Nasdaq Composite Index <.IXIC> was down 45.07
points, or 1.67 percent, at 2,650.93.
Wachovia shares fell 3 percent to $38.81 on the New York
Stock Exchange, while shares of Citigroup Inc <C.N>, the
largest U.S. bank, fell 2.1 percent to 432.12.
Qualcomm's outlook added to concern sparked by Cisco
Systems Inc's <CSCO.O> comments on Wednesday that the fallout
from the credit crisis was hurting demand from key customers.
"With regards to technology, Cisco was a catalyst ... for
the decline. Stocks like Google, Apple have been outperforming
everything, but when you get a catalyst like Cisco, people just
take profits," Rueckert said.
On the Nasdaq, shares of Apple, the maker of the iPhone,
led losses, with a drop of 2.3 percent to $171.17, followed by
shares of Qualcomm, which fell 6.4 percent to $37.24.
(Editing by Kenneth Barry)
(([email protected]; +1 646 223 6085; Reuters
Messaging:[email protected]))
((Multimedia versions of Reuters Top News are now available
for: * 3000 Xtra: visit
http://topnews.session.rservices.com * BridgeStation:
view story .134 For more information on
Top News: http://topnews.reuters.com))
Keywords: MARKETS STOCKS