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Little Relief in Sight

Time: 10:25 EST/15:25 GMT | News Source: Associated Press | Posted By: Alex Harris

Technology and communications funds reverted to their losing ways this week, as disappointing earnings news and dismal forecasts for the coming quarters renewed investors' sense of caution. Both groups ended the five trading sessions ending Thursday (that's when we stop the clock to tally fund returns) on a sour note, shedding 6.06% and 5.27%, respectively.

Nervous investors pulled out of technology stocks as they watched Microsoft's Bill Gates and Hewlett-Packard's Carly Fiorina defend their companies in court. On the communications front, WorldCom lowered its 2002 revenue guidance by $1 billion on Monday, causing a 33% stock swoon and dragging down shares of AT&T as well. Wireless equipment provider Ericsson also dropped 23% on Monday after it announced that sales would fall more than the 10% it had originally projected. Year-to-date, communications funds are down 24.44%, making them the worst performing sector.

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