MARKET CLOSE: Techs end week with modest gains

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Technology stocks pushed higher Friday while retail and financial stocks stammered following a mixed Producer Price Index report. The Dow Jones industrial average fell 55 points to 10,614.06 while the Nasdaq moved up 49 points to end at 3,874.93.

Although the much-anticipated PPI figures gave a mixed reading of the U.S. inflation picture, traders opted to take an optimistic view, hoping signs that prices are in check will stay the Federal Reserve's hand on interest rates.

"There's some relief that the numbers were not worse," said Edgar Peters, chief investment officer at Boston-based PanAgora Asses Management Inc. "There seems to be some misplaced optimism in the market that the Fed is going to stop."

The U.S. Labor Department reported that its producer price index (PPI) was unchanged overall and advanced 0.2 percent excluding food and energy prices in May.

Advanced Micro Devices (AMD) led chip stocks higher, gaining 1 7/16 to 88 9/16. Intel (INTC) rose 1 1/32 to 127 7/32 and IBM (IBM) closed off 3/16 to 119 9/16.

FVC.com (Nasdaq: FVCX) shot up 4 13/32, or 63 percent, to 11 7/16 after announcing it received a healthy investment from Vulcan Ventures, Inc., the investment organization of Paul G. Allen.

Microsoft (MSFT) closed unchanged at 68 13/16 while Oracle (ORCL) and Sun Microsystems (SUNW) gained 5/16 and 2 7/16 a share, respectively.

Citrix Systems (Nasdaq: CTXS) fell 10 3/8, or 20 percent, to 41 3/16 on concerns that Microsoft's breakup could signal tougher competition.

Yahoo! (YHOO) lost 13/16 to 143 3/16. Amazon.com (AMZN) picked up 5/16 to 52 3/16 while Lycos (LCOS) and eBay (EBAY) finished up 1 15/16 and 1 1/2 a share, respectively.

Music site MP3.com (Nasdaq: MPPP) hustled up 1 15/16, or 11 percent, to 19 3/16 on reports that it has reached a settlement with Warner Music Group and BMG Entertainment in the copyright-infringement suit filed against MP3 by affiliates of five major record labels.

The new leader of JDS Uniphase (Nasdaq: JDSU) said the optical component maker will continue its aggressive growth-through-acquisition strategy. JDSU closed up 9/16 to 110 9/16 and Ciena (CIEN) finished up 4 3/4 to 139 7/8.

Cisco Systems (CSCO) gained 11/16 to 64 3/8 and Nortel Networks (NT) ended up 7/16 to 59 3/8.