Apr. 3, 2009 (Investor's Business Daily) -- Stocks hovered near fresh session lows as investors continued to mull this morning's economic data.
The Dow and NYSE composite were down 0.9% apiece, while the S&P 500 lost 0.8%. The Nasdaq fell 0.5%, but the narrower Nasdaq 100 rose 0.1%. Gains in Research In Motion (RIMM) and Apple (AAPL) boosted the index.
Turnover was again tracking sharply lower across the board.
Capital One Financial (COF) shed 6% after Moody's Investor Services downgraded one of its credit ratings. "The downgrade reflects Moody's view that Capital One faces continued elevated credit costs and profitability pressures as the U.S. economy remains weak," the agency said in a statement.
EPIQ Systems (EPIQ) dropped 5% on brisk trade as it continued south following Thursday's reversal. Janney Montgomery Scott started coverage of the financial and legal software firm at neutral. EPIQ may be adding a handle to its cup base.
Allegiant Travel (ALGT) fell 4% in fast trade. The air carrier retreated just one day after passing a 49.16 buy point from a cup base. Allegiant reports earnings on April 21. Analysts see profit flying 145% to $1.15 a share.
10:15 a.m. Update: Indexes Pull Back Modestly In Early Trade
BY VINCENT MAO
Major stock indexes pulled back from three days of gains Friday following a round of mixed economic data.
The Dow, S&P 500 and NYSE composite all fell 0.5%. The Nasdaq sank 0.4%, though the big-cap Nasdaq 100 rose 0.2%.
Volume was tracking sharply lower across the board.
Stocks were mostly directionless at the open, but then drifted a little lower after the ISM services index for March came in at 40.8, down from 41.6 in February. Economists expected an uptick to 42. Readings below 50 signal contraction.
Novo Nordisk (NVO) gapped down and dropped 9% after a Food and Drug Administration panel gave the company's diabetes drug a split ruling.
Micron Technology (MU) gapped down and lost 3% after the memory chip giant reported a much wider-than-expected fiscal Q2 loss late Thursday.
The Semiconductor Industry Association said global chip sales tumbled 30.4% in February from a year ago. "Demand for semiconductors is likely to continue well below 2008 levels for the next few quarters, with a gradual recovery to follow as the global economy recovers," said SIA President George Scalise said in a statement. But, "while it would be premature to conclude that the sales decline has hit bottom, there are some indications that the rate of decline has moderated from the final quarter of 2008."
Akamai Technologies (AKAM) sank 6% after Citigroup lowered the Web content and application delivery firm to hold from buy on valuation.
