Dow, Nasdaq tread water

The Commerce Department confirms the U.S. economy is floundering, but stocks show little reaction.

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Stocks were mixed in Thursday trading as the Nasdaq composite index closed off 33 points to 1,820.54, while the Dow Jones industrial average moved up 14 points to finish at 9,799.06.

The Commerce Department reported the U.S. economy grew only 1 percent in the fourth quarter of 2000, down from a 2.2 percent increase in the third quarter.

Technology stocks didn't move much in either direction after the report.

"Certainly the high-tech area is already in a severe recession, but I'm not sure if the rest of the economy is as bad yet," Jon Burnham, a portfolio manager with Burnham Asset Management, told Reuters. "I'm really confused, to be honest."

Microsoft shares fell 19 cents to $55.38. Oracle lost 58 cents to $14.52, and Sun Microsystems closed off $1.15 to $14.70.

Tech Data gained $2.72 to $29.03 after easily topping analysts' estimates in its fourth quarter but warned that sales and earnings in its first quarter will fall well short of estimates.

Intel trimmed 31 cents to $26.63, while Advanced Micro Devices and IBM added 60 cents and 62 cents a share, respectively.

Cabletron Systems moved up 96 cents to $11.95 after topping analysts' estimates in its latest quarter. The network-equipment maker is one of the few companies in its sector that has managed to reiterate estimates for the first quarter.

Cisco Systems slid 50 cents to $15.25. Nortel Networks lost 50 cents to $13.50, and Lucent Technologies closed off 89 cents to $9.38.

SafeNet was the Nasdaq's biggest loser, plunging, $20.56 to $12.81 after it warned that first-quarter sales and earnings will miss Wall Street's estimates by a wide margin.

Yahoo inched up 6 cents to $15. America Online Time Warner trimmed 1 cent to $40.75, while Amazon.com and eBay dropped 80 cents and $2.06 a share, respectively. CMGI shed 12 cents to $2.55.

Among widely held PC stocks, Dell Computer gained 50 cents to $26.94, Compaq Computer clipped 35 cents to $19.07, Gateway added 27 cents to $16.80 and Apple Computer closed up 36 cents to $22.53.

Staff and Reuters contributed to this roundup.