Tech Industry

MARKET CLOSE: Techs, blue chips retreat

Interest-rate angst and profit taking in the technology sector conspired to drag the Nasdaq composite down 127 points to 3,936.95 Thursday. The Dow Jones industrial average fell 122 points to end at 10,376.12.

"It is broad-based weakness today," said Guy Truicko, portfolio manager at Unity Management. "In technology, there may be some profit-taking. A lot of investors are really keying off the next week's Fed meeting."

Despite economic data suggesting the economy has finally tapered off a bit, some analysts are still convinced the Fed will bump rates another quarter point next week.

Microsoft (MSFT) shares slipped 7/8 to 79 13/16 while Oracle (ORCL) and Sun Microsystems (SUNW) closed off 4 3/4 and 3 13/16 a share, respectively.

Among widely held networking stocks, Cisco Systems (CSCO) lost 2 7/8 to 64 9/16; Lucent Technologies (LU) dropped 1/2 to 61 1/2; Nortel Networks (NT) shaved off 2 7/16 to 64 3/4 and 3Com (COMS) closed up 7/16 to 52 1/16.

Shares in electronics company Burr-Brown Corp. (Nasdaq: BBRC) soared up 27 3/8 to a 52-week high of 100 Texas Instruments Inc. (NYSE:TXN), off 2 3/8 to 79 5/8, said it would acquire it in a $7.6 billion stock deal.

Manugistics (Nasdaq: MANU) rallied up 13 1/2 to 38 3/8 after it reported a first-quarter loss of $1.2 million, or 4 cents a share, on sales of $50.5 million.

Tektronix (NYSE: TEK) said earnings for its fourth quarter were 64 cents a share, vaulting over First Call's expected profit of 35 cents a share. Its shares closed up 3 7/16 to 72 15/16.

Among widely held PC stocks, Dell (DELL) lost 1 7/16 to 48 9/16; Compaq (CPQ) inched up 1/4 to 28 5/16; Gateway (GTW) added 1 7/16 to 61 5/16 and Apple Computer (AAPL) closed off 1 7/8 to 53 3/4.

Pegasus Communications (Nasdaq: PGTV) trimmed 5/8 to 44 3/8 after it announced it will buy a dozen DIRECTV rural affiliates in the U.S. for about $100.6 million in cash and stock.

IDX Systems (Nasdaq: IDXC) plunged 3 5/8 to 11 1/2 after it said it will lose between 30 cents a share and 35 cents a share in its second quarter.

General Magic (GMGC) shares soared up 2, or 30 percent, to 8 9/16 after inking a pact with IBM (IBM), off 3 1/16 to 111 7/16, to integrate their voice systems on e-commerce applications.

Intel (INTC) lost 4 15/16 to 134 1/16 and Advanced Micro Devices (AMD) closed down 4 to 91.

Yahoo! (YHOO) dropped 11 1/8 to 131 11/16 while America Online (AOL) and Amazon.com (AMZN) closed off 1 1/8 and 4 a share, respectively. Lycos (LCOS) picked up 5/16 to 54 5/16 after a Chase H&Q upgrade and eBay (EBAY) closed off 3 9/16 to 58 3/16.