Stocks tried to recovery from their morning lows after President Bush ordered an inquiry into the West Coast dockworkers lockout, but have since sunk back to their session lows.
The NASDAQ Composite (COMPX) 1,129 -0.91% leads the indexes lower as it sinks to yet another 52-week low and traded a morning low of 1,126. The larger cap techs as depicted by the NASDAQ-100 Index (NDX.X) 809 -0.75% has also traded a new 52-week low this morning with sector weakness found in Semiconductor (SOX.X) 221 -2.28%, Disk Drive (DDX.X) -2.3% and Fiber Optic (FOP.X) -2.2%.
The semiconductor sector found sellers after Prudential Financial lowered its chip industry rating to "market perform" from a "market outperform" rating. The firm sliced it view on a slew of individual stocks on the belief that any recovery will be muted. Among the list of stocks downgraded were BRCM -2.26%, CY -4% and LSI -2.8%.
Both the S&P 500 Index (SPX.X) 795 -0.67% and S&P 100 Index (OEX.X) 401 -0.52% are weighed lower by sector weakness in the financials. Both banking indexes have the larger multinational banks as depicted by the KBW Bank Index (BKX.X) 620 -2.81% and more regional banks S&P Bank Index (BIX.X) 241 -2.88% on concerns of bad loan exposure under a weaker economic backdrop.
Retailers are weak and has the S&P Retailing Index (RLX.X) 257 -3.04% and Retail HOLDRS (AMEX:RTH) $68.37 -3.07% both trading down with 3% losses. Dow component Sears Roebuck (NYSE:S) $33.81 -10.17% was hit lower after the retailing giant said third- quarter sales would fall short of Wall Street's expectations.