Tech stocks recovered from an early stumble Friday to close on a slightly upbeat note ahead of a key Federal Reserve meeting next week.
"It was looking like it was going to be a total bloodbath," said Charles Payne, head analyst at Wall Street Strategies. "Instead, investors are buying on weakness."
The tech-heavy Nasdaq Composite Index rose 27.03 to 2,781.31. The Dow Jones Industrial Average slid 69.54 to 10,659.98. The S&P 500 slipped 2.56 to 1,354.95.
Inter@ctive Week's @100 Index gained 13.53 to 2,735.56.
PMC-Sierra (Nasdaq: PMCS), down $21.88 to $74, rattled shares of communications chipmakers Friday after the company said a severe inventory correction and slumping orders from telecommunications carriers will dent sales and earnings. Analysts cut price targets for Applied Micro (Nasdaq: AMCC), down $1.81 to $76.19 and Broadcom (Nasdaq: BRCM), up $6 to $110.
Broadvision (Nasdaq: BVSN) fell 81 cents to $14.06. Analysts lowered their Broadvision estimates based on the company's mediocre quarter and outlook for 2001.
Solectron (NYSE: SLR), fell 30 cents to $39.20, after it reiterated its outlook for the second quarter and fiscal 2001 Friday and Flextronics (Nasdaq: FLEX), up $2.81 to $39, will take over manufacturing of Ericsson mobile phones. Ericsson (Nasdaq: ERICY) plunged $1.75 to $11.25.
Shares in JDS Uniphase Corp (Nasdaq: JDSU), up $4.44 to $59.63, jumped Friday as analysts trimmed back estimates in line with reduced forecasts but kept buy recommendations intact on improved long-term growth prospects.
AT&T (NYSE: T), down 63 cents to $23.31, WorldCom (Nasdaq: WCOM), up 94 cents to $21.31 and Sprint (NYSE: FON), down 50 cents to 24, were off. AT&T reports earnings Monday and WorldCom is reportedly mulling over layoffs. Earnings from AT&T and Sprint next week are likely to bring the sector down with plunging long distance revenue and a mixed outlook for upcoming quarters.
Telecommunications equipment maker CIENA Corp. (Nasdaq: CIEN), up 50 cents to $90.56, said it filed two supplemtns to its $1.5 billion shelf registration with the Securities and Exchange Commission.
Egghead.com (Nasdaq: EGGS), down 3 cents to $1.19, said it will fall short of fourth quarter revenue estimates, despite projecting a narrower-than-expected loss for the period, due to softening demand. But officials said the company is still on track to reach profitability in the fourth quarter of this year.
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Discuss: MARKET CLOSE: Techs rebound to close higher
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