Technology stocks lost ground in late trading Monday as the Nasdaq composite fell 62 points to 3,741.28. The Dow Jones industrial average lost 39 points to 10,808.15.
"The market is breathing a sigh of relief that those in positions of power are recognizing the potential strains and stresses," said Charlie Crane, chief market analyst at Key Asset Management. "But it is also cognizant that these are 'Band-Aids' on what could be potentially more significant wounds."
Intel (INTC) shares fell $2.50 to $45.44, continuing its recent slide after a third-quarter sales warning.
Advanced Micro Devices (AMD) shaved off 50 cents to $26. IBM (IBM) lost $2.19 to $121.69.
Sprint PCS surged $3.63 to $31.63 after Lehman Bros. said it upgraded the wireless phone operator to "buy" from "neutral."
Ciena Corp. (Nasdaq: CIEN) rose $6.81 to $127.56 after it announced that Korea Telecom has selected its MultiWave Metro system in a deal to deploy optical transport systems in Korea.
Among widely held PC stocks, Dell (DELL) dropped $1.56 to $34.38; Gateway (GTW) charged up $1.22 to $56.72; Compaq (CPQ) trimmed 2 cents to $28.60 and Apple Computer (AAPL) closed up $1.31 to $53.50.
Yahoo! (YHOO) shares tumbled $5.94 to $105.50. Lycos (LCOS) picked up $1.50 to $69.50 while America Online (AOL) and eBay (EBAY) rose 32 cents and 50 cents a share, respectively. Amazon.com (AMZN) closed off $1.06 to $40.38.
Webvan Inc. (Nasdaq: WBVN) inched up 6 cents to $2.97 after announcing that founder Louis Borders was stepping down as chairman of the company, a few days after the online grocer announced a delay in its commercial launch in several cities.
Online advertising network DoubleClick Inc. (Nasdaq: DCLK) shed $1.75 to $35.75 after announcing it has agreed to acquire @plan.inc (Nasdaq: APLN) in a deal worth $120 million.
Wind River Systems Inc. (Nasdaq: WIND) a leading provider of software and services for computers and other devices, said it named Michael Zellner to the position of vice president of finance and chief financial officer. Its shares closed up 44 cents to $47.06.
NBC Internet, Inc. (Nasdaq: NBCI) will re-emerge Monday as a portal that blankets all the NBC properties, including Snap.com, Xoom.com, MSNBC and NBC, and focuses on personalization. Its shares finished up $1.44 to $7.63.
Microsoft (MSFT) dipped $2 to $61.25 while Oracle (ORCL) and Sun Microsystems (SUNW) closed off $1.98 and 6 cents a share, respectively.