Tech Industry

MIDDAY MARKETS: Amazon dings Net stocks

Amazon led techs downstream at midday Friday, as lowered sales outlook for the e-tailer, and growing Fed fears inspired selling. The Nasdaq shed 28.61 to 3,908.23 and the Dow Jones industrial average rose 67.88 to 10,444.00.

The Inter@ctive Week @Net Index fell 7 to 481.36.

Investors shifted out of techs and into blue-chips Friday, as investors began to grow skittish about interest rates with the Federal Reserve's meeting next week drawing near.

Amazon (Nasdaq: AMZN) was drying up after analysts predicted light sales in the second and third quarters. The stock fell 8 15/16 to 33 1/16, or 21 percent. Ebay (Nasdaq: EBAY) fell 7 1/16 to 51 1/8. Other players in the business-to-consumer field, such as priceline.com (Nasdaq: PCLN), down 6 to 39 5/16, Buy.com (Nasdaq: BUYX), down 1/16 to 4 7/8), barnesandnoble.com (Nasdaq: BNBN), down 3/16 to 7 5/16 and CDNow (Nasdaq: CDNW), down 1/8 to 2 3/4, were also suffering.

Yahoo! (Nasdaq: YHOO) shed 5 15/16 to 125 3/4 and America Online Inc. (NYSE: AOL) lost 1 7/8 to 54 5/8 following a vote of approval from Time Warner (NYSE: TWX), down 2 1/2 to 79 1/8 on the companies' merger.

On the IPO front, Accelerated Networks (Nasdaq: ACCL) jumped 17 7/8 to 32 7/8, after it priced its IPO at $15 a share Friday, above its range of $11-13.

Manufacturer's Service (NYSE: MSV) priced shares at $16 a piece for trading Wednesday; Qualstar (Nasdaq: QBAK) priced at $7 a share.

Citrix Systems (Nasdaq: CTXS), down 2 1/2 to 20 1/4, announced its founder and chairman, Edward E. Iacobucci, has resigned, and its CEO is shifting gears to president. The company is also investing in V-ONE Corp. (Nasdaq: VONE), up 7/16 to 5 7/16.

Micron Technology's (NYSE: MU) third quarter results saw more hype from analysts than investors Friday; the stock edged up 15/16 to 87 13/16 while analysts upped their estimates for the chip maker. Intel (Nasdaq: INTC) rose 1 3/8 to 135 7/16 and AMD (NYSE: AMD) fell 1 1/4 to 90.

Rambus (Nasdaq: RMBS) shares exploded, up 22 13/16 to 119 15/16, after the company announced it had settled its patent lawsuits against Japanese electronic machinery maker Hitachi Ltd.

Among other leading tech issues: Cisco (Nasdaq: CSCO) fell 1/4 to 64 5/16, Sun Microsystems (Nasdaq: SUNW) fell 2 11/16 to 89 3/8 and Oracle (Nasdaq: ORCL) dropped 1 1/8 to 80 3/8. Microsoft (Nasdaq: MSFT) was down 1 1/16 to 78 13/16.