Subject: [NEXTEL-1] WSJ.com -Among other wireless stocks on the wane, service provider Nextel Communications tumbled $1.13

From: Marcel <[email-masked]>
Date: Mon, 09 Dec 2002 16:33:53 -0500

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COMPANIES

Dow Jones, Reuters

International Business Machines Corp. (IBM)

PRICE
CHANGE
U.S. dollars

79.59
-2.73
4:01 p.m.

Qualcomm Inc. (QCOM)

PRICE
CHANGE
U.S. dollars

39.19
-2.29
4:01 p.m.

Microsoft Corp. (MSFT)

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CHANGE
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53.53
-1.94
4:01 p.m.

Dell Computer Corp. (DELL)

PRICE
CHANGE
U.S. dollars

27.54
-1.11
4:01 p.m.

AOL Time Warner Inc. (AOL)

PRICE
CHANGE
U.S. dollars

13.08
-0.92
4:01 p.m.

UAL Corp. (UAL)

PRICE
CHANGE
U.S. dollars

0.93
0.00
4:01 p.m.

Electronic Data Systems Corp. (EDS)

PRICE
CHANGE
U.S. dollars

16.32
-0.57
4:02 p.m.

* At Market Close

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Tech Stocks Head Lower;

IBM and Qualcomm Drop

By KATHERINE MEYER

THE WALL STREET JOURNAL
ONLINE

NEW YORK -- Technology shares dropped Monday as an analyst's lowered
rating on International Business Machines
contributed to broader market blues. A downgrade on Qualcomm helped slam wireless
stocks, and videogame players also took a hit.

In late afternoon trading, the Nasdaq Composite Index was down 40.20, or
2.8%, to 1382.20, while Morgan Stanley's high-tech index fell 13.30 to 304
and the Nasdaq 100 Index of nonfinancial stocks lost 38 points to
1027.90.

Among some tech heavyweights, Microsoft
dropped $1.25 to $54.22, while Dell
Computer slid $1.04 to $27.61, both on the Nasdaq Stock Market.
AOL Time Warner fell 80 cents to
$13.20 on the New York Stock Exchange.

THIS WEEK:

Tuesday: Oct. wholesale inventories;
Federal Reserve meeting

Thursday: Adobe, Ciena earnings; Nov.
retail sales

Friday: Nov. producer price index; Dec.
Michigan consumer sentiment survey (preliminary)

Techs followed the broader market lower Monday as investors absorbed a
bankruptcy filing from UAL, the parent company for United
Airlines. Market watchers also attributed the slump to Friday's
disappointing unemployment figures.

Uncertainty on the geopolitical front is also taking a toll on the
market as the White House
named a new Treasury secretary, CSX chief John Snow, to replace Paul O'Neill. Investors are also
playing cautiously amid
renewed fears of war, prompted by President Bush's insistence that Iraq's declaration
that it has no forbidden weapons is a lie.

"There's a lot of uncertainty, whether domestically in the White House
or on the foreign front with the situation in Iraq," said Michael Sheldon,
chief market strategist at Spencer Clarke. "Right now we're in a corrective
phase for the market and especially the Nasdaq stocks, which have had the
sharpest run-up."

Helping to set a negative tone for the tech sector, shares of IBM
dropped $2.30 to $80.02 on the Big Board after
Banc of America Securities cut its rating on the technology giant to "market performer." Analyst Joel
Wagonfeld cited IBM's expensive stock price and expected continued
sluggishness in information-technology spending as the reason behind the
downgrade.

Also getting hit was IBM rival Electronic Data
Systems, which sank 51 cents to $16.38 on the Big Board. The
computer-services giant said it expects to
take a fourth-quarter charge of five cents a share due to its leasing arrangements with United
Airlines.

Meanwhile, Emulex lost $1.78, or 8.1%, to
$20.17 on the Big Board after SoundView Technology Group downgraded the
storage-networking company to "neutral." Analyst Glenn Ingalls said he
thinks an appreciation in the stock price above the low $20's would require
better-than-expected improvement in corporate technology spending.

Few sectors were immune to Monday's selloff. Semiconductor stocks, often
susceptible to drastic market swings, got hit particularly hard as
investors chewed on continued uncertainty in IT spending. Chip giant
Intel sank 74 cents to $17.97 on
Nasdaq, while Texas Instruments lost $1.21, or
6.6%, to $17.02 on the Big Board. Semiconductor-equipment firm Applied Materials fell 95 cents to
$13.94, also on Nasdaq.

The Philadelphia Stock Exchange Semiconductor Index, which includes both
chip makers and chip-equipment firms, shed 19.90 to 311.50.

Wireless stocks also got slammed. Shares of Qualcomm fell $2 to $39.48
on Nasdaq after Salomon Smith Barney downgraded the maker of cellphone
components to "in-line," from "outperform," based on valuation. At "current
levels the stock has priced in substantial upside to current earnings
expectations," analyst T.C. Robillard said in a note to clients.

Shares of cellphone maker Nokia
fell in tandem, tumbling $1.25 to $18.09 on the Big Board, although Salomon
upgraded the Finnish company to "outperform," saying Nokia offers "relative
stability" to investors in the next six to twelve months compared with
other stocks in the wireless-equipment group. However, Mr. Robillard said
he doesn't think investors "should be overexposed or putting fresh money
into any of the wireless-equipment names."

Among other wireless stocks on the wane, service provider Nextel
Communications tumbled
$1.13 to $11.77 on Nasdaq, while handset maker Motorola fell 53 cents to $9.34 on
the Big Board. The Amex networking index tumbled 10.30, or 7.1%, to
135.90.

Videogame stocks took a drubbing after UBS Warburg cut its investment
rating on several companies amid speculation the holiday-shopping season
won't be as strong as expected. Shares of THQ dropped $1.20 to $15.79, while
Activision fell $1.13 to $18.19,
after both were cut to "hold" from "strong buy." Electronic Arts, which was kept at
"buy," slid $1.67 to $64.35. All trade on Nasdaq.

In other news, Cable &
Wireless plunged $1.49, or 38%, to $2.41 on the Big Board. The
company has been slammed by two linked events -- a credit downgrade that triggered disclosure of a potentially
huge tax liability. Late Friday, Moody's Investors Service cut the
company's long-term debt rating to "junk" status, kicking in a previously
unreported clause from a 1999 deal with Deutsche Telekom.

CheckFree shed $2.54, or 14%, to
$16.23 on Nasdaq following news that the
software company's president quit in order to seek a chief executive post elsewhere. The resignation
of Peter F. Sinisgalli, who also serves as the company's chief operating
officer, is effective Jan. 31.

-- Shaheen Pasha of Dow Jones Newswires
contributed to this article

Write to Katherine Meyer at
[email-masked]

Updated December 9, 2002 3:16 p.m. EST

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