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Tech Industry

MARKET CLOSE: Techs slide further

Not even a strong quarter from a bellwether could stop the technology sector from losing more ground Wednesday.

The tech-heavy Nasdaq Composite Index slid 199.94 to 3,385.07. The S&P 500 retreated 29.06 to 1,383.08. The Dow Jones Industrial Average dropped 168.97 to 10,367.78. Inter@ctive Week's @100 Index fell 213.64 to 4,716.45.

Positive news from two bellwethers failed to inspire buyers. Cisco (Nasdaq: CSCO) lost 4 5/16 to 58 7/16 despite a strong quarterly report.

"It's all psychological," said Bill Meehan, chief market analyst at Cantor Fitzgerald in Darien, Conn. "When it became pretty clear that the response to Cisco was less than exuberant, the sell-off accelerated. Momentum drove these technology stocks up, but momentum works in two directions."

Applied Materials (Nasdaq: AMAT), down 6 to 84 5/8, is slated to report after Wednesday's bell.

IBM (NYSE: IBM) shed 5 3/8 to 103 5/8 following yesterday's meeting with analysts.

Motorola (NYSE: MOT) lost 17 5/16 to 87 3/16 after Salmon Smith Barney cut its rating on the stock to "buy."

Microsoft (Nasdaq: MSFT) also shed 1 5/8 to 66 3/16 as investors awaited its response to the court's break-up proposal.

Getty Images (Nasdaq: GETY), down 3 17/32 to 28 63/64, reported a loss of 46 cents a share Wednesday on booming e-commerce revenue. The company also announced the departure of its CFO.

Safeguard Scientifics (NYSE: SFE), down 3 1/4 to 37 13/16 after it reported first quarter net income of 26 cents a share, and said it has $800 million in cash for acquisitions and other purposes.

3DO (Nasdaq: THDO) surged 1 5/8 to 7 5/16 Wednesday after it exceeded lowered expectations for the fourth quarter. Rival game software maker Activision (Nasdaq: ATVI), slid 1 5/32 to 6 1/8 on disappointing quarterly results.

K-Tel International Inc. (Nasdaq:KTEL) fell 1 7/16 to 2 1/4 after saying it may be delisted from the Nasdaq.

Intel (Nasdaq: INTC) fell 10 7/8 to 106 1/16. Inc. (Nasdaq: AMZN) lost 2 15/16 to 53 5/16, Yahoo! (Nasdaq: YHOO) gained 1 29/64 to 118 57/64 and America Online Inc. (NYSE: AOL) lost 1 7/16 to 54 1/16.