Investors worried about Cisco at midday Monday while holding out for the Federal Reserve's meeting. The Nasdaq inched up 0.04 to 2,781.34 and the Dow Jones industrial average was off 12.62 to 10,647.36.
The Inter@ctive Week @Net Index rose 3 to 322.74.
The Nasdaq was barely into positive territory at midday as investors awaited Tuesday's meeting of the Federal Reserve. Recent slackening growth has led analysts to expect the Fed may lower the cost of borrowing for the second time this month.
The most actively traded stock on the Nasdaq was Cisco (Nasdaq: CSCO). Investors shaved $2.19 to $36.19 off the company after it said the current fiscal quarter looked more challenging than a few weeks ago, but the longer term outlook had improved.
Another disapointing quarterly announcement came from AT&T Corp. (NYSE: T), down $0.50 to $22.81, which said its pro forma fourth quarter earnings and revenue were in line with already lowered expectations, but the company's long distance business continued to sag. AT&T also gave growth projections for its individual units.
Telecommunications equipment company Tellabs Inc. (Nasdaq: TLAB), down $0.88 to $60.06, said it will acquire Future Networks, a voice and data cable modem company, for $181 million cash in a deal that shores up Tellabs position in the cable data and
Maxim Integrated Products Inc. (Nasdaq: MXIM), down $6.69 to $56.81, snapped up Dallas Semiconductor Corp. (NYSE: DS), down $7.64 to $34.45 Monday for about $2.5 billion in stock. Analysts said the acquisition is a good deal for Maxim, but some were surprised that Dallas Semiconductor didn't hold out to fetch a higher price.
Shares of Portal Software Inc. (Nasdaq: PRSF), jumped $3.08, or 31 percent to $13.91 after the company announced a software platform deal with AOL Time Warner Inc. (NYSE: AOL), up $1.05 to $56.09.
Business-to-business software and services company Ariba Inc. (Nasdaq: ARBA), down $3.56 to $36.44, said on Monday that it will buy Agile Software (Nasdaq: AGIL), up $5.25 to $48.06, in a $2.55 billion stock swap.
Struggling copier giant Xerox Corp. (NYSE: XRX), down $0.82 to $7.7, reported its second-straight quarterly loss and said it will cut 4,000 jobs in the first quarter, about 4 percent of its workforce, with more job cuts planned later this year in an effort to get back on track.
Intel (Nasdaq: INTC) fell $0.13 to $35.75, Oracle (Nasdaq: ORCL) fell 0.25 to 30.13 and Microsoft (Nasdaq: MSFT) rose $0.13 to $64.13.
Amazon (Nasdaq: AMZN) rose $0.94 to $20.44, AOL (NYSE: AOL) gained $1.57 to $56.16 and Yahoo! (Nasdaq: YHOO) grew $1.69 to $39.38.