US stock market down as Oracle tumbles
US stock market went down slightly as Oracle shares tumbled. US stock markets is on downward journey right now after what seemed like it was set to go up at the opening of the market this morning. It seems the European market seems to have taken the Wall Street down and there was nothing in the US that could life the sentiment there.
It seems that more than the European stocks, what precipitated the crisis on Wall Street was the sharp drop in Oracle shares. At one point of time, the Oracle shares were being traded at 13 percent lower than the last closing.
Oracle has been very upbeat about its prospects. Dan Ford, vice president, product marketing, Oracle Communications a few weeks ago had said, “CSPs are at a crossroads. They face another year of budgetary pressure, at a time when the need for innovation and competitive differentiation has never been greater. CSPs need to increase customer retention and improve the provision of content and services such as media and applications. More CIOs are focused on simplifying and streamlining their core IT operations and focusing on the areas of their IT operation which can drive real efficiency and growth within the business”.
While talking about Oracle stock sharply going down today, Business Week quoted Kevin Shacknofsky as saying, “The key thing about the weakness in Oracle is that people were delaying making decisions investing in technology. The question is — are negative headlines on the European situation starting to affect decision making and will that jeopardize the recovery? There’s a lot of work to do to solve the European debt crisis. With sentiment as weak as it is, it’s a big problem.”
Today’s fall of Oracle share was the highest in the last nine years. The tumble has taken the sheen out of promising looking Wall Street.
Dow Jones Industrial Average that opened at 12,103.28 points went down by as much as -0.46 percent. At one point it had gone up as high as 12,119.70.
S&P 500 Index was also down by as much as -0.37 percent. At the time of filing this story it was at 1,236.73 points after opening at 1,241.25. NASDAQ Composite Index was the worst victim today. It was at 2,559.30 points after going down by as much as -1.71 percent.
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