Feeds

MS ruling knocks stuffing out of Wall Street

Already they're calling it: 'Charcoal Tuesday'

  • alert
  • submit to reddit

Mobile application security vulnerability report

The Microsoft antitrust ruling initiated a badly-needed correction in the tech-heavy NASDAQ composite on Monday. By the end of trading, the composite closed down 349, or 7.5 percent, for its single-largest point loss in history as investors sold billions of dollars worth of New Economy stocks, primarily in order to buy familiar Old Economy stocks in the Dow, which rose over 300 to close at 11,222. Microsoft shares fell 15 percent Monday on jittery anticipation of the antitrust ruling, and in the process costing Chairman Bill Gates US $11 billion personally. About forty other dot-coms, caught helplessly in the vortex, sank to their lowest values for the year. The NASDAQ collapsed again Tuesday, and by over 570 points, or twenty-seven percent off from its historical high point in afternoon trading. Action on the Dow had been more restrained Tuesday, with a gain of 1.86 to 11,223.79 showing at midday. But panic on the NASDAQ spread throughout the Street, leaving the Dow down by over 500 at one point. Then programmed trading and bargain hunters colluded to save the day, which ultimately left both indices to close only slightly off from Tuesday's market opening. Ominously, Treasury notes were on the rise Tuesday as investors took refuge from dot-com uncertainty. By midday, 10-year notes were up 9/32; thirty-year bonds were up 16/32; two-year notes were up 3/32; and five-year notes were up 8/32, all a sure sign of bearish retreats to traditional comfort zones. We warned readers that a correction was iminent on the NASDAQ some weeks ago, when we perceived the imbalance between the Old and New Economy shares as artificial and impossible to sustain. The shadow of a correction appeared briefly Tuesday afternoon but could not materialise. It appears that the tech sector won't take its medicine voluntarily, so we expect to see a tremendous reciprocal momentum in both market sectors during the weeks to come. A firm correction does, of course, have to come at some point. How dramatic it will be depends on how wide the swings become. If they remain in the range of 500 points, then it will be a spectacular shock indeed. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.