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Market Update : 
Nasdaq Drops 1% on Semiconductors
Author: Elena Todorova
123jump.com
Last Update: 4:15 PM EDT October 27 2005


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U.S. stock markets have sustained the bearish sentiment throughout the whole trading session. The negative tone was set by news that Dow component GM had been subpoenaed by U.S. regulators. The stock's decline of 5.5% dragged blue chips. The three major averages have extended declines with the Nasdaq down by 1% on weak semiconductors. All sectors trade in the red just before market close.

 
ITT Industries (ITT: chart) diversified industrial and technology company, posted Q3 earnings of $2 a share, up vs. $1.16 a share in the same period last year on revenue growth. If not for non-recurring items, the company would have earned $1.37 a share, beating analyst estimate of $1.35 a share.

Raytheon Co. (RTN: chart), defense systems producer, reported Q3 net income of 50 cents a share, up from 34 cents a share a year ago in line with analyst expectations. Q3 included a 1 cent a share after-tax loss in discontinued operations vs. a 7 cents a share after-tax loss in the year-ago period.

Trammell Crow (TCC: chart), diversified commercial real estate services provider, reported Q3 earnings of 40 cents a share, up from 15 cents a share on 20% revenue growth, beating analyst estimate of 34 cents a share.

CORPORATE NEWS

General Motors (GM: chart), the world’s largest carmaker, announced that it has received subpoenas from the SEC, dealing with the financial reporting of several issues, recovery of recall costs from suppliers and other obligations. The subpoenas are related to an investigation into pension and other post-employment benefits and certain transactions with Delphi.
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