The Nasdaq-100-tracking PowerShares QQQ (NasdaqGM: QQQ) slipped more than 2% on Wednesday after Oracle (NasdaqGS: ORCL) reported a rare revenue miss.
Oracle accounts for 5.9% of the Nasdaq ETF. Shares of the tech giant were down nearly 14% after the company accouned disappointing quarterly results.
“New license revenue, which generates a future stream of recurring and highly profitable maintenance fees, grew at the weakest pace since the June-August 2009 quarter,” said Morningstar analyst Rafael Garcia in a note Wednesday.
“Furthermore, the results of the hardware segment, which posted the third straight year-over-year decline in quarterly revenue, were disappointing. Not surprisingly, results from Europe and North America reflected difficult business conditions,” the analyst added.
The $24.4 billion Nasdaq-100 ETF was up about 3% year to date heading into Wednesday’s action.
The fund trailed the S&P 500 and the Dow on Wednesday and is trading below its 50-day and 200-day exponential moving averages.
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