Kokomo Tribune; Kokomo, Indiana

National news

April 12, 2014

Once-soaring tech stocks sink in sobering comedown

SAN FRANCISCO (AP) — The stock market's laws of gravity are ravaging its highest fliers.

Just look at the list of technology trailblazers whose values have plummeted from record highs during the past few weeks. Investors have re-focused on safer sectors such as utilities, health care and consumer staples instead of companies that promise potential growth from online services that are building huge audiences.

Stung by the abrupt change in sentiment, the stocks of recent stars such as Netflix, Facebook, Twitter and LinkedIn are 20 percent to 45 percent below their recent peaks. The steep downfall is raising questions about whether this is just a fleeting fit of fickleness or the foreshadowing of another market bubble about to burst.

The tech-driven Nasdaq composite index closed at nearly 4,358 early last month, its highest level since the 2000 peak, and has shed nearly 360 points, or 8 percent, since then.

Optimists expect a rebound. They point out that technology remains a bright spot in an otherwise dreary economy as software, computers, mobile devices and the Internet fill increasingly instrumental roles in work, entertainment and communications.

"Tech is where the action is," says longtime industry analyst Roger Kay.

Pessimists view the tech sector as Ground Zero for a long-overdue reckoning. They say the stock market that has been pumped up by the flood of money that the Federal Reserve has funneled into the long-term bond market since the financial meltdown of 2008 decimated the economy. Now, that those government-backed bond purchases are tapering off, people are starting to realize "the only thing holding this balloon up is the Fed blowing air in it," said Fred Hickey, editor of The High-Tech Strategist newsletter.

That's why he believes investors are parachuting from stocks that had soared to dizzying heights in a short period of time.

Text Only | Photo Reprints
National news
  • CIA Investigations [Duplicate] State Dept: 'No American is proud' of CIA tactics

    WASHINGTON (AP) — The State Department has endorsed the broad conclusions of a harshly critical Senate report on the CIA's interrogation and detention practices after the 9/11 attacks, a report that accuses the agency of brutally treating terror susp

    July 31, 2014 1 Photo

  • Full appeals court upholds labels on meat packages WASHINGTON (AP) — A federal appeals court has upheld new government rules that require labels on packaged steaks, ribs and other cuts of meat to say where the animals were born, raised and slaughtered. The meat industry has attempted to block the rul

    July 29, 2014

  • Hepatitis Drug [Duplicate] $1,000-per-pill Sovaldi now hepatitis treatment of choice WASHINGTON (AP) — The price may be high but so is demand. A new $1,000-per-pill drug has become the treatment of choice for Americans with hepatitis C, a liver-wasting disease that affects more than 3 million. Even with insurers reluctant to pay, Sov

    July 29, 2014 1 Photo

  • Debt Study [Duplicate] Study: 35 percent in US facing debt collectors WASHINGTON (AP) — More than 35 percent of Americans have debts and unpaid bills that have been reported to collection agencies, according to a study released Tuesday by the Urban Institute. These consumers fall behind on credit cards or hospital bill

    July 29, 2014 1 Photo

  • Virus drugmaker fights pediatricians' new advice CHICAGO (AP) — A costly drug given mostly to premature babies is at the center of a clash between the manufacturer and the nation's leading pediatrician's group, which recommends scaling back use of the medicine. The dispute involves new guidelines f

    July 28, 2014

  • Family Slain Maine [Duplicate] Police investigate deaths of family of 5 in Maine SACO, Maine (AP) — The state medical examiner plans to conduct autopsies on the bodies of five family members found shot to death in an apartment in southern Maine. Three children ages 4, 7 and 12 were among the victims discovered Sunday afternoon wh

    July 28, 2014 1 Photo

  • Obama Exporting Pollution [Duplicate] Not in my backyard: US sending dirty coal abroad NEWPORT NEWS, Va. (AP) — Coal from Appalachia rumbles into this port city, 150 railroad cars at a time, bound for the belly of the massive cargo ship Prime Lily. The ship soon sets sail for South America, its 80,000 tons of coal destined for power pl

    July 28, 2014 1 Photo

  • Zimmerman says he'll appeal NBC lawsuit dismissal ORLANDO, Fla. (AP) — George Zimmerman has filed a notice to appeal the dismissal of his defamation lawsuit against NBC Universal and three reporters. The appeal notice was filed Tuesday with the Seminole County Clerk of Courts. Judge Debra Nelson on

    July 25, 2014

  • House votes to limit tax credit for immigrants WASHINGTON (AP) — The House passed a bill Friday that would gradually increase the popular child tax credit and make it available to more families with higher incomes. However, millions of low-income families would lose the $1,000-a-child credit in 2

    July 25, 2014

  • Ruling on antibiotics in livestock reversed NEW YORK (AP) — The U.S. Food and Drug Administration isn't required to hold public hearings to evaluate the health risks of widespread use of antibiotics in animal feed, a federal appeals court ruled Thursday. The decision by the 2nd U.S. Circuit Co

    July 25, 2014

Latest news
Featured Ads
Only on our website
AP Video
Netanyahu Vows to Destroy Hamas Tunnels Obama Slams Republicans Over Lawsuit House Leaders Trade Blame for Inaction Malaysian PM: Stop Fighting in Ukraine Cantor Warns of Instability, Terror in Farewell Ravens' Ray Rice: 'I Made a Huge Mistake' Florida Panther Rebound Upsets Ranchers Small Plane Crash in San Diego Parking Lot Busy Franco's Not Afraid of Overexposure Fighting Blocks Access to Ukraine Crash Site Dangerous Bacteria Kills One in Florida Workers Dig for Survivors After India Landslide Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries
Poll
Kelly Lafferty's video on Tom Miller