The tech-heavy Nasdaq was dragged on by a bad outlook for networking component Finisar.
The Optical group has a little life in the form of Finisar (FNSR) and JDS Uniphase (JDSU).
Finisar's note seemed to set the whole group on fire, with several names we have recommended in the past taking part.
The optical networking sector is trading lower Thursday following a disappointing financial report and outlook last night from Finisar.
FORBES: Finisar's Disappointing Outlook Sinks Optical Stocks
Optical-equipment maker Finisar achieved similar growth in equipment intended for core-fiber applications.
Newton in a separate notes that the deal should be a long-term positive for the optical sector, with the most upside likely for JDSU and Finisar.
As he notes, sentiment on the sector has been battered by a weak financial report from Ciena and disappointing guidance from Finisar, among other factors.
Finisar also noted that the better-than-expected profits reflected lower-than-expected expenses.
Shares of the optical networking components maker Finisar are trading higher in late trading after the company posted better-than-expected profits for its fiscal first quarter ended July 31.
For any technology investor with a sense of history nothing could be scarier than seeing the former JDS Uniphase atop the list of this year's best performers, with its old rival Finisar not far behind.
As I noted yesterday, Oclaro (OCLR) after the close on Tuesday issued an earnings warning, news that followed similarly downbeat reports from Ciena (CIEN), Finisar (FNSR) and EXFO (EXFO).
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