Dow, Nasdaq tread water

The Commerce Department reported the U.S. economy grew only 1 percent in the fourth quarter of 2000, down from a 2.2 percent increase in the third quarter.

Technology stocks didn't move much in either direction after the report.

"Certainly the high-tech area is already in a severe recession, but I'm not sure if the rest of the economy is as bad yet," Jon Burnham, a portfolio manager with Burnham Asset Management, told Reuters. "I'm really confused, to be honest."

Microsoft shares fell 19 cents to $55.38. Oracle lost 58 cents to $14.52, and Sun Microsystems closed off $1.15 to $14.70.

Tech Data gained $2.72 to $29.03 after easily topping analysts' estimates in its fourth quarter but warned that sales and earnings in its first quarter will fall well short of estimates.

Intel trimmed 31 cents to $26.63, while Advanced Micro Devices and IBM added 60 cents and 62 cents a share, respectively.

Cabletron Systems moved up 96 cents to $11.95 after topping analysts' estimates in its latest quarter. The network-equipment maker is one of the few companies in its sector that has managed to reiterate estimates for the first quarter.

Cisco Systems slid 50 cents to $15.25. Nortel Networks lost 50 cents to $13.50, and Lucent Technologies closed off 89 cents to $9.38.

SafeNet was the Nasdaq's biggest loser, plunging, $20.56 to $12.81 after it warned that first-quarter sales and earnings will miss Wall Street's estimates by a wide margin.

Yahoo inched up 6 cents to $15. America Online Time Warner trimmed 1 cent to $40.75, while Amazon.com and eBay dropped 80 cents and $2.06 a share, respectively. CMGI shed 12 cents to $2.55.

Among widely held PC stocks, Dell Computer gained 50 cents to $26.94, Compaq Computer clipped 35 cents to $19.07, Gateway added 27 cents to $16.80 and Apple Computer closed up 36 cents to $22.53.

Staff and Reuters contributed to this roundup.