TECH STOCKS: You Knew It Was ComingTECH STOCKS: You Knew It Was Coming

Where IBM goes, other tech stocks are sure to follow. It seemed that way Thursday as investors continued a three-day sell-off after a less-than-enthusiastic outlook from IBM. There also was a third-quarter profit warning from Nokia.

Disappointment abounded everywhere one looked in the tech sector. In addition to IBM, which was down $3.52, to $83.22; SAP fell $2.71, to $27.99; Internet Security Systems fell $3.04, to $11.74; and QLogic was down $4.70, to $46.65. The Nasdaq-100 tracking stock, which provides an indication of general interest in tech stocks, was down 94 cents, or 2.9%, to $31.22, on heavy volume of nearly 101 million shares.

Those wanting better earnings were able to overlook positive economic news elsewhere. The Commerce Department reported that housing construction in June reached its highest level since January, rising 3.7% to an adjusted annual rate of 1.8 million units, more than the 1.75 million economists expected. And the Labor Department reported new claims for unemployment benefits fell more than experts anticipated.

Our information 100 was hardest hit, dropping 12.05 points, or 4.6%, to 249.89, while the Nasdaq Composite was down 49.95 points, or nearly 3%, to 1,698.02. The Dow Industrial index survived with the least damage, dropping 43.77 points, or 0.5%, to 9,050.82; and the S&P 500 was down 12.27 points, or 1.2%, to 981.73.