Investors jumped on blue-chip issues Monday while technology stocks continued to struggle. The Dow Jones industrial average stormed up 245 points to 10,835.77 while the Nasdaq shed 87 points to finish at 3,191.33.
"I think people are fed up with technology and they shouldn't be. It's the only growth sector out there," said Barry Hyman, chief investment strategist at Weatherly Securities. "People instead have sought the safety of the Dow, looking at financials and consumer staples to play the market."
Yahoo! (YHOO) shares fell $2.63 to $52.63 while Amazon.com (AMZN) and eBay (EBAY) lost $2.75 and $2.13 a share, respectively.
America Online (AOL) trimmed 25 cents to $47.75. Lycos (LCOS) closed unchanged at $41.06.
Among widely held PC stocks, Dell (DELL) added 88 cents to $28.81; Compaq (CPQ) inched up 40 cents to $30.35; Gateway (GTW) rose 31 cents to $50.60 and Apple Computer (AAPL) finished up 75 cents to $19.31.
Speciality magazine publisher Primedia Inc. (NYSE: PRM) lost $3.81 to $11.44 after announcing it will acquire search site About.com (Nasdaq: BOUT), up 31 cents to $24.19, in a deal worth $690 million.
Microsoft (MSFT) moved up $1.38 to $69.06. Oracle (ORCL) shed $2.56 to $31.63 and Sun Microsystems (SUNW) ended up 81 cents to $104.
Globalstar Telecommunication (Nasdaq: GSTRF) fell short of analyst estimates Monday and saw its shares fall $3.63 to $2.38.
Cisco Systems (CSCO) slid $2.63 to $48.06 after Lehman Brothers analyst Tim Luke said he lowered his 12-month price target to $60 to $65 share from $90 over concern that Internet companies will slow down spending on technology.
Nortel Networks (NT) lost $2.56 to $40 and Lucent Technologies (LU) closed off 94 cents to $20.38.
Intel (INTC) lopped off $1.38 to $45 while Advanced Micro Devices (AMD) and IBM (IBM) closed down 19 cents and 44 cents a share, respectively.