Technology Stocks Continue Slide

A wave of profit warnings prompted by Asia’s economic woes hammered Wall Street again on Thursday, with technology stocks leading the way in a broad-based selloff.

The Dow Jones industrial average fell 129.80 to close at 7,848.99. Earlier in the day, the index of 30 blue-chip stocks had dropped more than 160 points, led by a decline in IBM.

For the third consecutive day, the technology-heavy Nasdaq Stock Market showed the steepest losses. The Nasdaq composite index fell 38.07, or 2.3 percent, to close at 1,558.54.

Analysts said the selloff has been prompted by the growing realization that Asia has accounted for much of the high-tech companies’ booming profit growth in recent years. With a dramatic reversal to Asia’s economic boom, companies are rethinking their business plans and warning investors to expect slimmer profits.

“It’s easy to just blame Asia,” said Brian Belski, technical analyst at Dain Bosworth in Minneapolis. “But the companies and the industries that have very heavy exposure there are in for some trouble.”

Some of the stocks that moved substantially or traded heavily Thursday:

NYSE

IBM fell 4-7/8 to 101-5/8.

The Wall Street Journal reported that much of the computer giant’s earnings growth can be attributed to its share-buyback program and a lower tax rate, not the success of the underlying business.

Reebok fell 3-13/16 to 29.

The sneaker maker said an inventory backup and sluggish sales in athletic footwear and apparel will hurt earnings. Reebok said it is likely to earn $2.25 to $2.35 a share for fiscal year 1997 prior to special items. Analysts had estimated profits of $2.50 a share.

NASDAQ

Quantum fell 3-7/8 to 19-15/16.

The disk-drive maker said that weakness in Southeast Asian markets will push its quarterly earnings far below expectations.

Applied Materials fell 4-7/16 to 27-5/16.

Merrill Lynch & Co. lowered its rating on the company.

Kulicke & Soffa fell 6-3/4 to 18-1/8.

The supplier of semiconductor assembly equipment is postponing delivery of its equipment in South Korea, citing uncertainty among its Korean customers. The company said the delay will hurt earnings.

AMEX

Hasbro fell 1-1/16 to 32-5/8.

The toymaker gave up some of the gains it made after announcing Tuesday that it would eliminate 20 percent of its work force and buy back up to $500 million worth of its own stock.