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Dow Drops 77; Nasdaq Down 47.60

March 5, 1998

NEW YORK (AP) _ Stocks slid sharply this morning as a profit warning from Intel sent the technology sector tumbling, dealing a sharp setback to Wall Street’s record-setting rebound.

At 10 a.m. on Wall Street, the Dow Jones industrial average was down 77.97 at 8,461.27.

The technology-laden Nasdaq composite index was down 47.60, or 2.7 percent, at 1,712.10 to lead the broad market slide.

After Wednesday’s close, Intel announced that its first-quarter profits and revenues would fall below expectations because of sluggish orders for its semiconductors. Analysts called the warning a sign of slowing demand for computers in general.

Intel was down 11 1/4 at 75 3/16 as the most active Nasdaq issue today, followed by fellow computer-industry bellwethers Microsoft, down 3 5/16 at 79, and Dell Computer, down 6 9/16 at 132 1/2.

Technology shares, pummeled repeatedly since late October amid concerns over their heavy exposure to the economic crisis in Asia, were among the biggest gainers in last month’s record-setting rebound.

Declining issues outnumbered advancers by a 6-to-1 margin today on the New York Stock Exchange, where volume came to 79.70 million shares, about even with Wednesday’s pace.

The Standard & Poor’s 500 list was down 10.64 at 1,036.69, and the NYSE composite index was down 4.12 at 540.34.

The American Stock Exchange composite index was down 5.48 at 703.70.

Overseas, Tokyo’s Nikkei stock average fell 1.4 percent. In afternoon trading, Frankfurt’s DAX index was down 1.8 percent and London’s FT-SE 100 was down 1.4 percent.

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