The Nasdaq crept into positive territory, however, boosted by upgrades for Sun Microsystems and EMC.
After sinking more than 7 percent last week, the Nasdaq composite index finally gained, picking up 22.55 points to 2,026.71. The Dow Jones industrial average rose 46.72 to 10,299.40.
Comcast made an unsolicited, $44.5 billion bid Sunday to buy AT&T Broadband, the communications giant's cable unit. AT&T said it doesn't plan to sell the unit, which was slated for an initial public offering sometime this year. Comcast shares fell $2.98 to $39.30. AT&T shares were up $1.98 to $18.70.
AT&T spinoff AT&T Wireless began trading as an independent venture. Shares were down 59 cents to $16.56.
A few technology companies rose on positive analyst comments. Bear Stearns analyst Andrew Neff upgraded Sun Microsystems, up $1.14, or 8 percent, to $14.82, and EMC, up 72 cents to $22.32, saying the companies will benefit once the economy finally turns around.
Qualcomm rose $3.54 to $61.72 after an upgrade from SG Cowen Securities.
Priceline.com fell 3 cents to $7.80 after gaining earlier in the day when Merrill Lynch analyst Henry Blodget upgraded the stock. Blodget said the dot-com company has a strong position in the online travel industry and that there's a likelihood it will report a strong second quarter.
Webvan brought some negative news to the dot-com arena. The online grocer said it has ceased operations and plans to file for Chapter 11 bankruptcy protection. Shares in the company, which has been struggling for months, were down a penny to 5 cents.
Among technology bellwethers, Microsoft fell 37 cents to $65.69, Oracle rose 70 cents to $18.91, Cisco Systems rose 46 cents to $17.25 and Intel rose 47 cents to $28.90.
Amazon.com rose 54 cents to $15.81, AOL Time Warner gained 58 cents to $50.69 and Yahoo gained 69 cents to $18.57.
Staff and Reuters contributed to this report.