Similar concerns also sent blue chips down sharply. The losses extended a trend that made 2000 the worst year ever for the Nasdaq and the weakest in nearly two decades for the Dow Jones industrials. Slowdown expected EMC Corp., Network Appliance Inc. and other data-storage stocks dropped after a Robertson Stephens Inc. analyst said the companies' profits may disappoint investors because businesses are cutting back purchases of new computer equipment and software. The declines in EMC and Network Appliance, which gained last year even as the Nasdaq had its biggest-ever annual loss, show that investors expect the slowdown in profits to extend to industries that had been seen as havens.
Investors are reluctant to commit.
They are genuinely concerned about the slowdown in the economy, and the bad news doesn't give them a reason to act any differently. A report Tuesday from the National Association of Purchasing Management showing manufacturing activity in December was at its lowest level in nearly a decade added to the market's downturn. People are just throwing in the towel. The market spent most of the day focused on earnings, with some of the most visible hemorrhaging in technology issues. Co. Analysts said the declines reflect worries that have dogged the market since Labor Day.