The major averages were hit with heavy selling Friday. Many investors have begun to take the view that an economic recovery is around the corner and the stock market is transitioning from bearish to bullish. But optimism is being dampened by concerns over the current quarter's results.
Investors are very wary of profit warnings and negative surprises.
The latest negative earnings pre-announcement from networking equipment maker Juniper led technology stocks lower. After the market close Thursday, the closely-watched chipmaking giant said it expects that revenue, gross margin percentage and expenses for the second quarter will be within the previous expectations, though on the low end of the previously announced ranges. Many analysts saw Intel's announcement as a sign that the worst is over for the semiconductor industry and a rebound is imminent. Uncertainty fueled some of Friday's losses as NYSE-listed stocks were not all trading until late in the session. Technical problems caused a glitch in trading on NYSE stocks.