stocks fall on Dell profit warning
New York: U.S. stocks dropped on Friday, on a profit
warning from personal computer maker Dell Inc. With this,
Nasdaq completed a third week of losses.
markets remained anxious about the slowing down of the
US economy and the ongoing Israel-Lebanon conflict that
had the potential to affect oil prices.
investors turned to defensive-play stocks such as health-care
shares fell to their lowest in nearly five years after
the company warned of a fall in second-quarter earnings
and revenues. Shares of Dell fell by nearly 10 percent
to $19.91 on Nasdaq, while shares of rival Hewlett-Packard
Co. shed 4 percent to $30.52 on the New York Stock Exchange.
Dow Jones industrial average dropped 59.72 points, or
0.55 percent, to end at 10,868.38. The Standard &
Poor's 500 Index slid 8.84 points, or 0.71 percent, to
finish at 1,240.29. The Nasdaq Composite Index sank 19.03
points, or 0.93 percent, to close at 2,020.39. For the
week, the Nasdaq lost 0.8 percent.
the other two major U.S. stock indexes finished higher,
with the Dow gaining 1.2 percent and the S&P 500 advancing
raised its full-year outlook on strong demand for Windows
and said it planned a $40 billion share buyback. Shares
of Microsoft gained 4.5 percent, or $1.02, to $23.87 on
Nasdaq. The stock was the biggest advancer in the Dow
and the S&P 500, as well on the Nasdaq.
group Johnson & Johnson's stock rose 0.6 percent,
or 36 cents, to $61.73 on the NYSE and was the Dow's fourth-biggest
of Boeing Co fell 2 percent, or $1.61, to $79.08, while
Honeywell Inc's fell 1.1 percent, or 41 cents, to $36.21.
UBS and Credit Suisse cut their price targets on Honeywell
were heavy on the New York Stock Exchange, with about
1.92 billion shares changing hands, above last year's
daily average of 1.61 billion. On Nasdaq, about 2.40 billion
shares were traded, above last year's daily average of
1.80 billion. On the NYSE, decliners outnumbered advancers
by a ratio of about 2 to 1. On Nasdaq, about three shares
fell for every stock that rose.
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acquisition of AT&T approved
New York: Shareholders of BellSouth Corp. and AT&T
Inc. voted to approve AT&T's plan to buy BellSouth
later this year, the companies said. BellSouth said around
97 percent of those who voted approved the merger. That
represented 1.22 billion, or more than 67 percent, of
its outstanding shares. AT&T said the deal was approved
by 98 percent of votes cast by its shareholders.
agreed in March to buy BellSouth for $67 billion and said
it expects to complete the acquisition by autumn this
year. The deal is still subject to regulatory review by
the Department of Justice and the Federal Communications
merger comes amid a debate over privacy concerns involving
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