Blue-chip stocks posted nice gains again Monday but the technology sector wasn't as lucky. The Nasdaq composite closed off 188 points to 4,610.14 while the Dow shot up 85 points to finish at 10,680.24.
With a likely interest-rate hike coming Tuesday, investors shuffled around their portfolios to grab stocks that have been roughed up in the past few months.
"Investors are still shifting some money out of technology and small and mid-cap stocks into large-cap old economy stocks," said Hugh Johnson, chief investment officer at First Albany Corp. "But this isn't quite what we saw last week. It's much more of a balanced move."
There was no balance for MicroStrategy Inc. (Nasdaq: MSTR) Monday. Its shares plunged 140, or 62 percent, to 86 3/4 after the company restated its results, issued a profit warning and postponed a secondary offering.
Yahoo! Inc. (YHOO) closed up 29/32 to 172 1/32. America Online Inc. (AOL) gained 2 3/16 to 66 15/16 while Lycos Inc. (LCOS) and Amazon.com Inc. (AMZN) finished off 5 1/2 and 5/8 a share, respectively. eBay Inc. (EBAY) shed 22 13/16 to end at 196 1/8.
Xybernaut (Nasdaq: XYBR) closed up 5/8 to 17 3/16 after it issued a statement saying that the drop in its stock price Friday was overblown.
CDNow (CDNW) plunged 1 1/8 to 5 5/8 Monday after a Barron's report said the company only had a month's worth of cash left.
Among widely held PC stocks, Dell Computer Corp. (DELL) rose 1 1/4 to 57 11/16; Compaq Computer Corp. (CPQ) inched up 3/16 to 30 7/16; Gateway Inc. (GTW) shot up 2 3/8 to 61 7/8 and Apple Computer Inc. (AAPL) closed off 2 to 123.
Intel Corp. (INTC) gained 5 1/8 to 135. Advanced Micro Devices Inc. (AMD) picked up 2 1/8 to 52 1/8 and IBM Corp. (IBM) closed up 3 to 113.
Microsoft Corp. (MSFT) slid 2 to 97 3/8 and Sun Microsystems Inc. (SUNW) closed off 3 1/2 to 92 5/8.