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Tech Industry

MARKET CLOSE: Techs, blue chips roughed up

    Technology stocks closed out a rocky week with sharp losses Friday as the Nasdaq composite shed 91 points to 4,093.76 while the Dow Jones industrial average fell 110 points to close at 10,733.56.

    Despite more solid earnings reports from the likes of Sun Microsystems and America Online, investors shied away from the tech sector.

    "Yesterday's run-up was a little bit excessive and not as broad as I'd like to see," said Larry Rice, chief investment officer at Josephthal Lyon & Ross. "If it was a run-up after Greenspan, the jury is still out over whether Greenspan is going to raise interest rates. The third thing is, there have been disappointments from technology companies one by one."

    Agilent (A) shares fell 7 to 47, a day after the company warned investors that third quarter earnings would fall far short of expectations.

    Sun Microsystems (SUNW) picked up 5 15/16 to 104 after easily topping analysts' estimates in its latest quarter. Oracle (ORCL) lost 2 11/16 to 75 7/16 and Microsoft (MSFT) closed off 2 1/2 to 73 5/16.

    Shares of Macromedia Inc. (Nasdaq: MACR) plunged 29 11/16 to 79 1/16 despite topping Wall Street earnings expectations. The company reported first quarter pro-forma income of $14.5 million, or 26 cents per share, up from $3.5 million, or seven cents a share in the year-ago quarter.

    Among widely held PC stocks, Dell (DELL) shed 7/16 to 52 3/8; Gateway (GTW) lost 3/8 to 62 3/4; Apple Computer (AAPL) shed 1 9/16 to 53 9/16 and Compaq (CPQ) inched up 1/4 to 28 1/16.

    Yahoo! (YHOO) shares closed off 1 1/2 to 138 5/16. America Online (AOL) closed down 1 5/8 to 57 1/2 after beating Street estimates by 2 cents a share in its latest quarter.

    Amazon.com (AMZN), which reports earnings next week, lost 13/16 to 41 1/8. Lycos (LCOS) trimmed 1 3/16 to 58 13/16 and eBay (EBAY) closed off 2 1/4 to 58 3/4.

    Xilinx (Nasdaq: XLNX) fell 11 1/8 to 75 15/16 after reporting net income of 27 cents per share Thursday night, two cents higher than First Call estimates. The programmable logic device maker was downgraded Friday by WR Hambrecht, whose analyst said it had a "relatively high valuation."

    Intel (INTC) shares lopped off 4 1/2 to 138 3/16 while IBM (IBM) and Advanced Micro Devices (AMD) closed down 2 13/16 and 5 1/8 a share, respectively.

    Palm Computing (Nasdaq: PALM) got a boost Friday after Standard and Poor's said it would be added to the S&P 500 index July 27. Its shares closed up 1 9/16 to 38 5/16.