MARKET CLOSE: Investors shun tech stocks
Whatever momentum technology stocks had last week evaporated Monday as the Nasdaq composite fell 258 points to 4,188.18. The Dow Jones industrial average closed up 75 points to 11,186.56.
With a slew of earnings from technology bellwethers coming out in the next few weeks, investors chose to err on the side of caution.
"Wall Street is basically waiting to see what earnings will look like," said Peter Cardillo, director of research at Westfalia Investments.
Intel Corp. (INTC) spent most of the day in the black after announcing it will invest $6 billion to increase its chip production capacity to meet rising global demand. But by day's end, Intel shares closed off 5 7/8 to 131 3/16.
Advanced Micro Devices Inc. (AMD) closed off 1 1/4 to 74 1/4 and IBM Corp. (IBM) shed 15/16 to close at 122 3/16.
Cisco Systems Inc. (CSCO) lost 2 3/8 to 72 9/16. 3Com Corp. (COMS) gained 1 15/16 to 52 15/16 and Lucent Technologies Inc. (LU) trimmed 7/16 to 59 3/16.
Adtran (Nasdaq: ADTN) fell 6 1/8 to 61 3/4 after it topped expectations for the first quarter, reporting earnings of 42 cents a share.
ON Technology (Nasdaq: ONTC) tumbled 3 5/16 to 6 1/16 after it said that it expects to lose between 20 cents and 22 cents a share, well below First Call's break-even consensus.
Among widely held PC stocks, Dell Computer Corp. (DELL) lost 3/4 to 54 7/16; Compaq Computer Corp. (CPQ) dropped 1/2 to 29 3/8; Gateway Inc. (GTW) was unchanged at 56 1/2 and Apple Computer Inc. (AAPL) closed off 6 3/4 to 125.
Citrix (Nasdaq: CTXS) gained 6 1/16 to 83 11/16 after PaineWebber started coverage on the stock as a "buy" and set a price target of $115 a share.
Intuit (Nasdaq: INTU) tumbled 9 5/16 to 41 after getting a downgrade.
Yahoo! Inc. (YHOO) slid 9 3/16 to 141 15/16. Amazon.com Inc. (AMZN) lost 4 3/16 to 63 3/8 while America Online Inc. (AOL) and Lycos Inc. (LCOS) slipped 3/4 and 7 9/16 a share, respectively.
Microsoft Corp. (MSFT) finished off 3 to 86 1/16 and Oracle Corp. (ORCL) fell 4 5/8 to 82 1/2.