An early rally in technology stocks fizzled in afternoon trading Thursday as the Nasdaq composite closed off another 93 points to 3,676.78. The Dow Jones industrial average fell 202 points to end at 10,923.55.
Bargain hunters must be licking their chops these days as several big-name technology stocks are trading at tempting discounts. Microsoft is below $80 a share and Amazon.com, an Internet bellwether, closed at $48 a share.
"I think it is going to be a much more even-handed market," said Trude Latimer, an independent market strategist. "We first need to have a couple of bounces and tests in the Nasdaq to see if confidence can return. As far as the 'old economy' stocks are concerned, they will not go back into the woodwork. They justified their existence."
Making matters worse, the Producer Price Index jumped 1 percent last month, according to the Labor Department, a tad higher than most analysts had expected.
Analysts cheered first-quarter results for Advanced Micro Devices (NYSE: AMD), though investors showed a lackluster reaction to the stock. Its shares closed off 5 1/4 to 70 3/4. Intel Corp. (INTC) lost 3/4 to 121 1/8 and IBM Corp. (IBM) ended off 3 1/2 to 110 1/4.
Among widely held PC stocks, Dell Computer Corp. (DELL) added 5/16 to 51 11/16; Compaq Computer Corp. (CPQ) inched up 3/16 to 26 5/16; Gateway Inc. (GTW) lost 4 1/8 to 51 1/18 ahead of its first-quarter results and Apple Computer Inc. (AAPL) closed up 4 9/16 to 113 13/16.
KLA-Tencor (Nasdaq: KLAC) tumbled 13 1/4 to 64 3/4 after it reported earnings of 38 cents a share for its third quarter, topping estimates by a nickel. Applied Materials Inc. (AMAT) shed 8 9/16 to 89 and Lam Research Corp. (LRCX) finished off 4 9/16 to 42 15/16.
Computer services supplier Unisys (NYSE: UIS) closed off 1 1/8 to 22 1/2 after it reported that first quarter net income was in line with recently lowered expectations.
Ameritrade (Nasdaq: AMTD) slipped 1 1/16 to 17 7/16 after it easily topped estimates Thursday with fiscal second quarter earnings of $3.2 million, or 2 cents a share.
Microsoft Corp. (MSFT) shaved off 1/8 to 79 1/4 while Oracle Corp. (ORCL) and Sun Microsystems Inc. (SUNW) fell 1 3/16 and 2 1/4, respectively.
Among widely held Internet issues, Yahoo! Inc. (YHOO) trimmed 1/8 to 136 1/16; America Online Inc. (AOL) tumbled 4 1/8 to 58 3/8; Amazon.com Inc. (AMZN) dropped 8 3/8 to 48 and eBay Inc. (EBAY) closed off 4 9/16 to 138 13/16.
Cisco Systems Inc. (CSCO) shaved off 3 7/8 to 61 1/8 and 3Com Corp. (COMS) inched up 1/16 to 44 3/8.