After Market: Tech Stocks Help Lead Broader Market Lower on Wall Street

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Twitter's debut grabs the headlines, but the rest of the market stumbled. Shares of Twitter soared, but other key Internet stocks helped lead the broader market's big losses.

The Dow Jones industrial average (^DJI) dropped 153 points, giving back all of Tuesday's big gains. The Standard & Poor's 500 index (^GPSC) fell 23, and the Nasdaq composite index (^IXIC) tumbled 74 points.

The market ignored some surprisingly upbeat economic news -- a stronger-than-expected 2.8 percent increase in third quarter GDP, a drop in weekly jobless claims, and an interest rate cut by the European Central Bank.

Wall Street Twitter IPO
Richard Drew/AP
As for Twitter, the stock was priced at $26 a share. The first trade was at $45 and change. And after a brief spurt higher, it closed at just below $45 a share. A lot of market pros think it's very richly valued at that level. At that price, Twitter has a market value above $30 billion -- about equal to such well-known, profitable companies as General Mills (GIS) and CBS (CBS).

In the meantime, Facebook (FB), LinkedIn (LNKD), Groupon (GRPN) and Yelp (YELP) all slid Thursday. There's not necessarily a direct correlation with Twitter's IPO, but these are companies that often named as comparable to the microblogging firm.

Outside of the Internet space, Whole Foods (WFM) was one of the standout losers.
It had been a hot stock until sliding 10 percent today. The upscale grocer lowered its sales forecast for the current fiscal year.

Wendy's (WEN) also tumbled 11 percent and the casual restaurant chain Noodles (NDLS) lost 10 percent -- both on disappointing earnings news.

While losers certainly dominated the trading, but there were some interesting gainers as well.

The biotech firm Geron (GERN) soared 45 percent on news of positive test results for its experimental drug to treat a bone marrow disease. In just three months, Geron shares have quadrupled in value.

A pair of struggling retailers posted big gains. J.C. Penney (JCP) shares gained more than 5 percent as a key measure of sales rose last month, the first increase in two years. And American Eagle Outfitters (AEO) rose 4 percent. The company raised its earnings outlook.

What to Watch Friday:
  • At 8:30 a.m. Eastern time, the Labor Department releases employment data for October at 8:30 a.m. Eastern time and the Commerce Department releases personal income and spending for September.
  • At 10 a.m., the Labor Department releases job openings and labor turnover survey for September and the University of Michigan releases its preliminary survey of consumer sentiment for November.
These major companies are scheduled to report quarterly corporate earnings:
  • Cablevision Systems (CVC)
  • E.W. Scripps (SSP)
  • Lions Gate Entertainment (LGF)
-Produced by Drew Trachtenberg.


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radareastbay

europe is heading towards a double dip recession. the federal reserve is printing money to pay our bond debt and interest. we are proping up the stock market thru the federal reserve printing money... this is devalueing the dollor. the federal reserve claims there is no inflation. lol lol since we went with the kinsey plan buy your way out with obama we are 6 trillion in debt plus 4 trillion new money printed by the federal reserve bank. thats 11 trillion 5 years. the end came is comming. look out around june 2014.

November 08 2013 at 12:47 AM Report abuse rate up rate down Reply
WILLS

The market went down because many are reading between the lines. A 2.8 increase in GDP is all about WHERE it came from, and that means sectors. A decrease in claims may mean nothing more than a lot more ran out. I am not being negative as one only has to look at the numbers. Profits have been up, but revenue down and salary remains static. Since this a consumer based economy - what does that tell you? Friday #\'s will make it move, either up or down, but I would not bet on too much up and if there not what is expected, quite a bit down will be in order. Check Asia and Eu in morn - Asia is already expecting the neg.

November 07 2013 at 9:14 PM Report abuse rate up rate down Reply
betty_brock

Tech stocks? Isn't that what went down the tubes in the 80s?

November 07 2013 at 7:32 PM Report abuse -1 rate up rate down Reply
1 reply to betty_brock's comment
WILLS

90\'s

November 07 2013 at 9:15 PM Report abuse rate up rate down Reply
elendil3136

$30 billion valuation for Twitter? Insane. The company is nothing more than a room full of servers catering mainly to the fickle social needs of todays 15-30 crowd. When the next big thing in social media comes along - and it will - you won\'t be able to get lunch money for your holding. The stock will fall by half before you can get your brokerage app online.

November 07 2013 at 6:35 PM Report abuse +2 rate up rate down Reply
1 reply to elendil3136's comment
Hello Bob

Unfortunately, at least in the United States, anything that sells is worth what some dumba** will pay for it.

November 07 2013 at 7:17 PM Report abuse +2 rate up rate down Reply