NEW YORK (Reuters) – U.S. stocks fell on Friday after Microsoft Corp. tempered revenue expectations for the Vista computer operating system.
Already battered home builder shares got another dose of bad news as data showed weaker-than-expected housing starts last month, sending the Dow Jones Home Builder index down 1.3 percent.
Microsoft Chief Executive Steve Balmer said late on Thursday analysts’ revenue forecasts for Vista were “overly aggressive.” Shares of Microsoft were the top-weighted decliner on the Dow, S&P 500 and the Nasdaq 100.
“Microsoft can’t catch a break. We’re at 20 million shares in volume already – that’s not your grandmother trading,” said Cummins Catherwood, managing director at Rutherford, Brown & Catherwood in Philadelphia. “Those hedge funds can’t deal with disappointment. They can’t afford to wait for the impact to dissipate.”
The Dow Jones industrial average was down 7.93 points, or 0.06 percent, at 12,757.08. The Standard & Poor’s 500 Index was down 3.86 points, or 0.26 percent, at 1,452.95. The Nasdaq Composite Index was down 10.61 points, or 0.42 percent, at 2,486.49.
Microsoft shares were down 2.2 percent to $28.81 on the Nasdaq.
Microsoft, Windows Vista, Stocks