Technology stocks were roughed up again Wednesday, sending the Nasdaq composite down 28 points to 2,808.78. After gaining more than 80 points in early trading, the Dow closed up only 2 points to 11,036.34.
Federal Reserve Board Chairman Alan Greenspan avoided the hot-button topic of interest rates during his speech at Grand Valley State University in Grand Rapids, Mich. However, some of his colleagues were more direct.
Federal Reserve Governor Laurence Meyer warned that spiraling consumer spending and raising labor costs remain a concern.
"Everyone was watching the wrong member of the Federal Reserve," said Dick Stein, a vice president and chief technical analyst at Noble International Investments. "Meyer sounded as hawkish as you could possibly be."
That dreary sentiment permeated the technology sector Wednesday as leading stocks in every sector took a step backwards.
Intel Corp. (INTC) shaved off 1 11/16 to 85 155/16 while Advanced Micro Devices Inc. (AMD) and International Business Machines Inc. (IBM) lost 1 9/16 and 1 5/16 a share, respectively.
Among Internet stocks, Mortgage.com Inc. (MDCM) picked up 1 13/16 to 17 1/2 after another analyst started bullish coverage on the online mortgage site.
America Online Inc. (AOL) managed to push up 11/16 to 94 but Amazon.com Inc. (AMZN) and Excite@Home Corp. (ATHM) fell 1 1/2 and 1 1/16 a share, respectively. Yahoo! Inc. (YHOO) dropped 1 9/16 to 153 7/16 and Lycos Inc. (LCOS) trimmed 1/2 to finish at 43 1/8 after it signed an agreement to buy Quote.com, which provides financial information to subscribers on the Web, for $78.3 million in stock. Infoseek Corp. (SEEK) lost 1 1/16 to 30 1/4.
Ingram Micro Inc. (IM) fell 6 to 13 5/16 after it warned it would miss third quarter estimates by a wide margin and said it was seeking a new chief executive.
Fiber optic cable company Global Crossing Ltd. (GBLX) moved up 5 1/4 to 25 9/16 after announcing it is collaborating with Microsoft (MSFT) and Japanese Internet firm Softbank Corp. to build a $1.28 billion land and undersea telecommunications network in Asia. Softbank owns 70 percent of Ziff Davis.
Microsoft shares closed off 2 to 92 1/4. Oracle Corp. (ORCL) moved up 1/2 to 44 5/16 and Sun Microsystems Inc. (SUNW) lost 7/8 to 85 7/16. Intel Corp. (Nasdaq: INTC) added 9/16 to 88 3/16 and Advanced Micro Devices Inc. (NYSE: AMD) added 1/4 to 23 1/2.
Concentric Network Corporation (CNCX) rose 1 11/16 to 24 7/16 on plans to buy Britain's Internet Technology Group Plc in the biggest British Internet service provider takeover ever.
Gateway Inc. (GTW) trimmed 1 7/8 to 48 3/8 after ABN-AMRO cut its recommendation from "outperform" to "hold." Dell Computer Corp. (DELL) sliced off 1 _ to 47 5/8 and Apple Computer Inc. (AAPL) lost 1 7/8 to 74 1/2. Compaq Computer Corp. (CPQ) closed off 1/8 to 22 13/16.