Techs stand still as blue chips rise
Technology stocks stagnate as investors pour money into blue chip industrial stocks.
"We saw relative strength in the Nasdaq last week and now the Dow is playing a little bit of catch up," said Peter Coolidge, managing director of equity trading at Brean Murray & Co., as the Dow piled on gains. The Nasdaq composite index fell 10.19 points to 1,918.49. The Dow Jones industrial average rose 182.75 points to 9,687.53. The S&P 500 gained 12.86 points to 1,152.69.
One of Monday's biggest gainers was C-Cube Microsystems, which soared $4.94 to $13.75 after LSI Logic, down $2.68 to $18.01, on Monday said it will snap up the company in a stock swap valued at around $878 million. LSI said the deal will boost its position in the broadband entertainment market.
Communications chip company PMC-Sierra, off $1.68 to $32.26, on Monday warned it would miss revenue and earnings expectations for the first quarter, citing weak demand and cancelled orders.
Competitor Conexant Systems, off 63 cents to $10.50, also warned Monday that second-quarter revenue would be down as much as 40 percent. It said it would let go 1,500 people, or about 20 percent of its work force.
Transmeta jumped $2.81 to $18.81 after it announced a joint effort with Microsoft to produce a number of development-stage Tablet PC machines that will be widely distributed. Microsoft was off 50 cents to $56.06.
Among heavily traded stocks, AOL Time Warner rose $1.42 to $40.94, Cisco Systems fell 81 cents to $17.88 and Intel slid 50 cents to $28.31. Sun Microsystems retreated $1.01 to $17.24, and Dell Computer dropped $1.75 to $25.69. WorldCom rose $1.13 to $18.
Staff and Reuters contributed to this report.