It comes down to rate fears. The Fed is going to have to get pretty aggressive. We're quite worried about the interest rate outlook.
I think the Qualcomm report may be dampening sentiment and Compaq's report is somewhat mixed. It does seem that disappointment over the Qualcomm report is feeding into the tech stocks.
I think the Nasdaq was facing a lot of profit taking already. Certainly on the Nasdaq today, the Microsoft issue is hitting stocks in general.
Stocks are not reacting to good (earnings) news. Next week begins the real flood of what should be very closely watched reports. If the good earnings news is not able to buoy the market, it's because of interest rate concerns.
The trends can play themselves out in 20 minutes. It happens all in one day.
We've already let tremendous air out of these tech stocks. The prices on some of these tech stocks are looking very attractive.
People feel the growth is there whether you push rates up to 6.50 percent or 6.80 percent.
The Nasdaq has at least the Microsoft report to look forward to, which should be strong.
There's such a worldwide demand for chips that whether the Federal Reserve rises rates (a half percentage point) isn't going to slow demand for chips.
To a certain extent, the demands on productivity are so strong and the pace of innovation is so great. There is tremendous pressure and need to spend money on the business infrastructure to continue to maintain and improve productivity.
