Market Movers: Kodak Drags Dow Down

A drop in Eastman Kodak Co. (EK) took the Dow down today, and it seems the Nasdaq decided to go along for the ride. Both indexes fell about 1.5 percent, unable to reverse recent losses.

The Dow dropped 176.83 to 10631.32. Kodak was the cause of the Dow's woes. The establishment old-economy company plunged nearly 25 percent, losing $14.62 to $44.37.

The Nasdaq fell 51.67 to 3,689.55. But while most in the tech sector were down, stalwart Microsoft Corp. (MSFT) had reason to celebrate: The Supreme Court sent its antitrust case back to a lower appeals court, one that has previously overturned rulings against Microsoft. Shareholders seemed to regard this as a Redmond victory, sending shares up more than 2 percent. The stock gained $1.44 to close at $62.69.

With the exception of Oracle Corp. (ORCL) , which rose slightly, other large-cap tech stocks continued to fall. Intel Corp. (INTC) extended its painful slide, losing 4.5 percent, or $2.06, to $43.31. The Internet space also posted losses across the board, with a particularly steep tumble for Internet Capital Group (ICGE) . That stock plunged 16 percent, or $3.43, to $17.56.

Earnings news brought mixed tidings today. Palm Inc. jumped 6 percent on news that the company beat the Street's expectations. The stock gained $3.25 to close at $55.50. Micron Electronics Inc. (MUEI) also turned in strong numbers, but that stock fell 12 percent, closing down $1.50 to $10.87. Strangely, Micron Technologies Inc. rose 6 percent, enjoying a boost from investors who may have confused the two companies. The stock gained $2.87 to close at $49.62.

Sitel and Lexmark International Inc., companies that operate in completely different businesses, had something in common with Intel this week: All three attributed a slowdown in sales and revenues to difficulties in Europe. Sitel and Lexmark said today that they would miss expectations for the rest of the year. Their stocks promptly tanked. Sitel, which provides Internet-based customer service, dropped 35 percent, or $1.62, to $2.93. Lexmark, a maker of printers and PCs, fell 27 percent, or $14.31, to close at $37.68.

But in yet another example of the market's increasing selectivity, new issue CoSine Communications Inc. roared upward today for a first-day return of 187 percent. CoSine is in the infrastructure and networking businesses, and will compete against stalwarts such as Cisco Systems Inc. and Lucent Technologies Inc. The stock added $41.06 to its $23 offer price, closing at $63.06. InRange Technologies, last week's hugely successful IPO, shaved a little off its growth today. The stock dropped 6 percent, or $3.81, to $56.

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