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Tech Industry

MARKET CLOSE: AT&T leads techs lower

Technology stocks were trampled Tuesday as investors took some quick profits rather than ride out a possible interest-rate hike later this month. The Nasdaq composite closed off 173 points to 3,785.42 while the Dow lost 81 points to end at 10.731.12.

"Shorter-term momentum traders are taking their profits right now and longer-term investors are sitting on cash waiting for a better buying opportunity," said Paul Cherney, a market analyst at S&P Marketscope. "Problem is, to get a better buying opportunity, prices have to drop lower."

AT&T (T) gave investors some cause for alarm, falling 7 1/8 to 41 7/8 after it said revenue and earnings growth will be down from previous guidance for fiscal 2000.

Network-equipment stocks were battered as Cisco Systems Inc. (CSCO) fell 3 7/16 to 68 while Lucent Technologies (LU) and Nortel Networks (NT) closed off 1 9/16 and 3 1/4 a share, respectively.

Healtheon/WebMD (Nasdaq: HLTH) closed up 1/4 to 20 after announcing its first-quarter loss was 49 cents a share, a penny wider than First Call's expected loss of 48 cents a share.

Yahoo! Inc. (YHOO) closed off 8 5/16 to 122 9/16. America Online Inc. (AOL) dropped 1 5/8 to 57 5/8 and Inc. (AMZN) slid 3 13/16 to 56 1/8. (Nasdaq: RCOM) closed off 1 3/16 to 55 7/8 after reporting a narrower than expected first quarter loss.

i3 Mobile (Nasdaq: IIIM) fell 4 5/16 to 14 3/16 after the company reported a first-quarter loss of 63 cents a share. A "strong buy" didn't cushion the fall.

Microsoft Corp. (MSFT) shares shed 3 9/16 to 69 7/8 while Oracle Corp. (ORCL) and Sun Microsystems Inc. (SUNW) finished off 1 7/8 and 3 3/4 a share, respectively.

Among widely held PC stocks, Dell Computer Corp. (DELL) dropped 1 1/4 to 49 13/16; Compaq Computer Corp. (CPQ) clipped 1 to 28 3/4; Apple Computer Inc. (AAPL) fell 6 7/16 to 117 7/8 and Gateway Inc. (GTW) closed off 1/16 to 55 15/16.

Intel Corp. (INTC) plunged 5 29/32 to 121 7/32 and Advanced Micro Devices Inc. (AMD) picked up 1 5/16 to 89 11/16.