Well, today's action on Wall Street continued a gruesome downward trend. All of the major indexes were down about 1.6%, including a 218 point decline for the Dow Industrials. Citigroup dropped another 5% on further downgrades and concerns that its write-offs due to subprime exposure could rise to $15B.The "dead cat" looks like it got backed over by a SUV. The market traded in a fairly tight range for most of the day. A mid-afternoon rally petered out and the sell-off into the close was on.
After the bell Hewlett Packard reported another terrific quarter. I guess we'll see tomorrow if this is enough to shake the tech sector out of its doldrums. Hewlett Packard did not see the same type of softness in the U.S. enterprise area commented on by Cisco and IBM. Hewlett Packard's earnings are more strongly influenced by consumers than some of the other big tech firms.
The light volume this week due to the Thanksgiving holiday makes it difficult to draw any conclusions from the action. The reduced liquidity means that moves up or down are likely to be exaggerated.
Disclosure: at the time of this posting the author was long CSCO and HPQ.
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