Tech stocks gain as Dow pauses

The CNET tech index jumps 77.85 to close at 3,308.77, elevated by shares of online brokers and Nortel Networks.

2 min read
The CNET tech index jumped 77.85 to close at 3,308.77, elevated by shares of online brokers and Nortel Networks.

Winners beat losers, with 72 of the 100 stocks in the index rising, 23 falling and five remaining unchanged.

Of the 18 sectors tracked, the semiconductor capital equipment and server hardware sectors posted the sharpest gains, rising about 6 percent and 5 percent, respectively. The computer service sector was the day's laggard, climbing a slim 0.2 percent.

In the broader markets, the Nasdaq composite index rose 80.74 to 4,798.13, and the Standard & Poor's 500 index edged up 6 to 1,464.47. The Dow Jones industrial average took a breather from yesterday's 499-point surge, inching down 35.37 to close at 10,595.23.

Intel closed up $4.81 at $129.88. The chipmaker may encounter some problems with its notebook chips. Microsoft rose $4 to $99.38. MSNBC.com, a Microsoft subsidiary, is talking with investment bankers about taking its Internet business public

The initial public offering of Universal Access, a business-to-business e-commerce company, was the biggest percentage gainer on the Nasdaq. The company's shares jumped $23, or 164 percent, to $37. Volume topped 13.5 million shares.

Active Voice was the Nasdaq's largest loser, falling $39.81, or 61 percent, to $25.19 on a volume of 3.7 million shares. The developer of fax and other communications systems warned that earnings for the fourth quarter will be lower than analysts' expectations.

Among members of the CNET tech index, E*Trade, Knight-Trimark and Nortel Networks posted strong gains.

E*Trade rose $3.06, or 11 percent, to $29.25, while Knight-Trimark rose $4.75 to $51.75. An analyst released a positive report on the online brokerage industry.

Nortel rose $8.25 to $128. Standard & Poor's will boost the weighting of the phone-equipment maker in the S&P 500 later today.

Software maker Adobe Systems fell $6.75 to $87.69. The company yesterday announced earnings that exceeded analysts' expectations and brokerage firms reaffirmed their ratings on the company's stock.

Computer hardware maker Analog Devices also fell $1.06 to $77.94. The company split its shares 2-for-1 yesterday.

The Philadelphia semiconductor index rose 27.71 to 1,254.83, led by Micron Technology, which gained $15, or 13 percent, to close at $128.38. Analysts recently issued favorable comments on the stock.

Business software maker SAP says it has dropped two lawsuits against its rival Siebel Systems. SAP shares rose $1.19 to $73; Siebel shares rose $4.56 to $139.94.

Apple said today it's adding a new computer distributor to its ranks. Its shares gained $3.44 to $125.