Technology stocks were roughed up again Tuesday as the Nasdaq composite fell 52 points to close at 3,689.57. The Dow Jones industrial average fell 176 points to 10,632.33 after Eastman Kodak became the latest component to warn of sluggish sales in the third quarter.
"The concern is that earnings are going to be disrupted not only for this quarter, but for the next several, as the economy slows, the euro (declines) and oil prices'' are still high," said Anthony Dwyer, chief market strategist at Kirlin Holding Corp. "People don't want to hold stocks that might blow up."
Microsoft (MSFT) made decent gains, picking up $1.44 to $62.69 after the U.S. Supreme Court agreed that its appeal of antitrust violations should be heard by a lower appellate court.
Oracle (ORCL) moved up 69 cents to $79.44 and Sun Microsystems (SUNW) shaved off 50 cents to $117.50.
Intel Corp. (Nasdaq: INTC) lost $2.05 to $43.33 after announcing that a government agency had ended an investigation into its business practices, but learned that rival Broadcom (Nasdaq: BRCM) had asked a court for an injunction in a patent dispute case. Broadcom closed up $4.75 to $257.
Advanced Micro Devices (AMD) lost $1.44 to $24.50 and IBM (IBM) closed down $3.69 to $119.31.
Atmel Corp. (Nasdaq: ATML) gained 56 cents to $16.25 after it reassured investors Tuesday that its business prospects remain strong despite the current weakness in the Euro and fears chip and PC companies are troubled following Intel's warning last week.
CoSine Communications Inc. (Nasdaq: COSN), maker of switches for delivering IP communication services, roared up $40.06 to $63.06 in its debut. The company hadpriced 10 million shares at $23 each, above its raised range. The company has come under SEC scrutiny for the way it reports revenue.
Micron Electronics (Nasdaq: MUEI) trimmed $1.50 to $10.88 after it smashed past analysts' expectations for the fourth quarter, driven by a 223 percent jump in its SpecTek memory division.
Among other widely held PC stocks, Dell (DELL) lost 69 cents to $33.63; Compaq (CPQ) added 62 cents to $29.06; Gateway (GTW) fell $3.12 to $53.60 and Apple Computer (AAPL) shaved off $2.06 to $51.44.
Broadband chip maker PMC-Sierra (Nasdaq: PMCS) moved up $5.94 to $224.44 after it said it will acquire privately held SwitchOn Networks in a stock swap valued at $450 million.
Yahoo! (YHOO) lost $3.06 to $102.44. America Online (AOL) shaved off 84 cents to $55.60 while Amazon.com (AMZN) and eBay (EBAY) closed off 63 cents and $1.69 a share, respectively.