Technology stocks made a late rally Monday, keeping losses to a minimum as the Nasdaq composite trimmed 11 points to close at 2,396.16. The Dow Jones industrial average also recovered a bit in late trading before finishing off 41 points to 10,621.35.
“It's a tug of war,” said David Sowerby, market strategist for Loomis Sayles. “The market likes lower interest rates, but that is not going to be an everyday event. What is more the everyday event is concern about the economy and corporate profits. That's simply getting the best of the market in the new year.”
VerticalNet (Nasdaq: VERT) fell $1.41 to $3.91 after it got a thumbs down from analysts Monday as it elected to replace departing CEO Joseph Galli with the company's co-founder and COO, Mike Hagan. Concerns were raised about the possibility that the company could miss estimates for the next quarter.
Yahoo! (YHOO) shares fell $1.31 to $27.19. America Online (AOL) lost $1.26 to $40.03 while Amazon.com (AMZN) and eBay (EBAY) inched up 38 cents and 6 cents a share, respectively. CMGI (CMGI) closed off 59 cents to $3.91.
Analyst reports for New Era of Networks (Nasdaq: NEON), off $2.41 to $3.09, were anything but glowing after the company warned late Friday that it will miss analysts' sales estimates by $18 million and post a huge loss in its fourth quarter. Some analysts lowered ratings, and Goldman Sachs gave up on the stock entirely.
Intel (INTC) finished off 13 cents to $31.94. Advanced Micro Devices (AMD) nudged up 19 cents to $16.19 and IBM (IBM) clipped 44 cents to $93.56.
Despite a downgrade, Fairchild Semiconductor's (NYSE: FCS) fourth quarter warning was greeted by cautious optimism by analysts on Monday. Its shares closed off 19 cents to $14.81.
Broadcom Corp. (Nasdaq: BRCM) gained $6.44 to $93.44 after it said it will buy ServerWorks Corp., a supplier of system integrated circuits for servers for about $957 million.
Global Crossing (NYSE: GX) moved up 56 cents to $19.50 after it said it expects to post strong revenue growth in 2001, with earnings between $2.0 to $2.1 billion.
Drugstore.com's (Nasdaq: DSCM) shares jumped 91 cents to $2.16 after the company said fourth quarter sales would beat analyst estimates.
Among widely held PC stocks, Dell (DELL) rose 13 cents to $19.13; Compaq (CPQ) lost 23 cents to $16.44; Gateway (GTW) lopped off 55 cents to $18.91 and Apple Computer (AAPL) finished up 19 cents to $16.56.
Microsoft (MSFT) trimmed 19 cents to $48.94. Oracle (ORCL) cut off 13 cents to $30 and Sun Microsystems (SUNW) picked up 19 cents to $28.19.
Cisco Systems (CSCO) fell 8 cents to $36.55. Nortel Networks (NT) sawed off 44 cents to $32.63 and Lucent Technologies (LU) moved up 88 cents to $15.38.