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MARKET CLOSE: Tech stocks lose ground

2 min read

Technology stocks closed out a decent week with slight losses Friday as the Nasdaq composite trimmed 11 points to 4,042.68. The Dow Jones industrial average moved up 10 points to close at 11,192.63.

In a speech Friday, Fed Chairman Alan Greenspan said the high rates of productivity growth that have helped boost the U.S. economy's performance and hold down inflation show few signs of tapering off.

Shares of fiber channel equipment maker Emulex (Nasdaq: EMLX) lost more than half their value in early trading after someone reportedly sent out a fake press release stating that company announced would restate earnings, and that its CEO was stepping down amid an investigation by the Securities and Exchange Commission regarding accounting practices.

By day's end Emulex closed off 7 5/16 to 105 3/4.

"The Emulex (fall) played a big role in that,'' said Bill Meehan, chief market analysts at Cantor Fitzgerald. "In a thin market ... it probably took a lot of air out of folks that were playing in the tech stocks."

Microsoft (MSFT) shares fell 1/2 to 70 5/8 while Oracle (ORCL) and Sun Microsystems (SUNW) shed 1/16 and 3 a share, respectively.

Among widely held PC stocks, Dell (DELL) dropped 3/8 to 38 5/8; Compaq (CPQ) lost 3/16 to 33 9/16; Gateway (GTW) added 3/16 to 66 3/16 and Apple Computer (AAPL) edged up 23/32 to 56 13/16.

The Justice Department is taking a closer look at the proposed merger between JDS Uniphase (Nasdaq: JDSU), up 3/16 to 125 5/16, and SDL Inc. (Nasdaq: SDLI), down 9 3/4 to 402 1/8.

A day after Razorfish Inc. (Nasdaq: RAZF) announced its president was leaving, the company's stock was downgraded by brokerage DB Alex Brown. The stock slid 7/8 to 13 11/16.

Yahoo! (YHOO) lost 5 9/16 to 134 1/4. America Online (AOL) trimmed 3/8 to 59 5/8 while Amazon.com (AMZN) and eBay (EBAY) added 9/16 to 13/16 a share, respectively. Lycos (LCOS) closed up 3 5/16 to 65 13/16.

Selectica, Inc. (Nasdaq: SLTC) gained 2 11/16 to 46 15/16 on news it was withdrawing plans for a secondary offering of four million shares.

Intel (INTC) clipped 1 5/16 to 72 15/16. Advanced Micro Devices (AMD) lost 11/16 to 34 1/4 and IBM (IBM) gained 4 1/16 to 128 7/8.