MARKET CLOSE: Dow stammers; techs move higher

2 min read

Technology stocks moved higher Tuesday while blue-chip issues retreated. The Nasdaq composite gained 24 points to 4,013.46, its first close above 4,000 in more than two months, while the Dow dropped 122 points to finish at 10.435.51.

Investors weren't terribly impressed with a report that the nation's trade deficit narrowed to $30.44 billion in April, slightly exceeding consensus Wall Street estimates for a $29.29 billion gap.

While the techs did manage some slight gains, there was a perceptible decline in buying from the past few weeks.

"We're looking a little bit tired," said Bryan Piskorowski at Prudential Securities. "It's been a nice, heady little run."

After missing out on Monday's rally, Internet stocks made decent gains as Yahoo! (YHOO) picked up 8 15/16 to 148 and eBay (EBAY) moved up 2 7/16 to 62 5/16. Amazon.com (AMZN) tacked on 3/4 to 46 1/16 and America Online (AOL) closed up 3 3/8 to 57 7/8. Lycos (LCOS) didn't join the fun, falling 3 3/8 to 58 7/8.

Gadzoox Networks (Nasdaq: ZOOX) plunged 6 7/8 to 13 7/16 after it said it anticipates first quarter revenue to be down by a third sequentially.

Micron Electronics (Nasdaq: MUEI) gained 7/16 to 12 1/2 after it reported stronger-than-expected third quarter earnings of $5 million, or a nickel a share, on sales of $370 million.

Apple Computer (AAPL) closed up 4 5/8 to 101 1/4 while Gateway (GTW) and Dell (DELL) fell 1/8 and 1 a share, respectively. Compaq (CPQ) closed up 1/8 to 27 9/16.

Oracle (ORCL) closed unchanged at 86 ahead of its fourth-quarter earnings report. Sun Microsystems (SUNW) added 1 9/16 to 97 and Microsoft (MSFT) finished up 1 1/4 to 74 15/16.

Blaze Software (Nasdaq: BLZE) was soared up 2 7/8 to 18 3/8 after German company Brokat Infosystems AG announced it would buy the company.

Engage Inc. (Nasdaq: ENGA) inched up 1 1/4 to 16 5/8 following news it will get $75 million in investments from CMGI Inc. (Nasdaq: CMGI), up 1 3/8 to 55 1/4 and Compaq.

Microsoft (Nasdaq: MSFT) rose 3/4 to 74 7/16. Intel (Nasdaq: INTC) rose 2 1/4 to 138 3/4.

Intel (INTC) shares moved up 1 13/16 to 138 5/16 while Advanced Micro Devices (AMD) and IBM (IBM) closed off 1/8 and 4 a share, respectively.