Some decent economic news is being offset by profit warnings from Ciena and Brocade. That has the Nasdaq down 25, and testing support at 1890. The Dow is down 20, but still well above support at 10,200. The S&P 500 is down 5, and testing support in the 1170 area.
Ciena Daily Chart
Ciena (CIEN) met expectations, but warned that the fourth quarter could be troubling. Fourth quarter sales are expected to fall 12 to 20 percent, and earnings will fall to the 2 to 7 cents range from the previously estimated 18 cents. The stock is down $8.21, or 29%. If the stock can get a reprieve from the selling pressure, it may be able to climb back above support at $21.50 that dates back to October of 1999. $15 looks like the next support level.
Brocade Communications Daily Chart
Brocade (BRCD) is down 12% after meeting Wall Street's expectations, but warning of modest growth in the next quarter. Brocade stock started heading lower at the start of last quarter, and hasn't stopped. BRCD was trying to break that trend, but has now broken support at $27.75. That support level was the top of the April cup with handle formation, and now support is hard to come by until $16.75.
The Dow is trying to shake off the poor tech news on the strength of Procter and Gamble (PG), up $1.79, and the same companies from yesterday that would benefit from a weak dollar - EK, MCD, IP. The Nasdaq is trying to bounce off support at 1890 thanks to retailers Costco, Ross Stores, and Bed Bath & Beyond.