Stocks closed mixed as weakness in the tech sector countered stronger-than-expected economic data. Jobless claims slipped to 414,000 last week, down 16,000 from the prior week and better than 421,000 expected. Housing starts jumped 3.5% in May. Building permits also beat expectations, rising 8.7%. But tech shares dragged the broader market lower with Research In Motion leading the decline ahead of earnings report Thursday afternoon. Gains came from Hewlett-Packard, Dell, Cisco Systems and Yahoo. In after-hour trading RIM fell 15% following a weaker-than-expected first-quarter report and lowered earnings outlook for its entire fiscal year. Implied volatility spiked to the 21 level on huge volumes.
Friday, June 17, 2011
Dragged down by tech stocks
Stocks closed mixed as weakness in the tech sector countered stronger-than-expected economic data. Jobless claims slipped to 414,000 last week, down 16,000 from the prior week and better than 421,000 expected. Housing starts jumped 3.5% in May. Building permits also beat expectations, rising 8.7%. But tech shares dragged the broader market lower with Research In Motion leading the decline ahead of earnings report Thursday afternoon. Gains came from Hewlett-Packard, Dell, Cisco Systems and Yahoo. In after-hour trading RIM fell 15% following a weaker-than-expected first-quarter report and lowered earnings outlook for its entire fiscal year. Implied volatility spiked to the 21 level on huge volumes.
