MARKET CLOSE: Techs stagger ahead of key earnings reports

2 min read

Technology stocks were roughed up ahead of several key earnings reports Tuesday as the Nasdaq composite shed 76 points to 3,213.79. The Dow Jones industrial average lost 149 points to finish at 10,089.71.

With tech heavyweights such as Intel and IBM due to report earnings after the bell, investors chose to sell ahead of the news.

"The main concern here is earnings, and that is overhanging this market," said George Rodriguez, senior vice president at Guzman & Co. "The feeling is that the economic slowdown that has been rumored within those industries is going to take hold, and when they announce this evening, there will be bearish news coming from those firms."

Spint (FON) shares fell 63 cents to $23.19 after it topped analysts' estimates in its latest quarter. Sprint PCS (NYSE: PCS) shed 94 cents to $30.81.

Intel (INTC) added 44 cents to $36.13 ahead of its earnings report. IBM (IBM) gained $1.88 to $113 and Advanced Micro Devices (AMD) dropped $2 to $18.38.

Cypress Semiconductor (NYSE: CY) lost $2.25 to $34.44 after it easily topped analysts' estimates for the third quarter, posting a profit of $100.5 million, or 70 cents per share, on sales of $356.2 million.

Memory chip maker Micron Technology Inc. (NYSE:MU) plunged $4.69 to $29 after analysts cautioned that price erosion may signal slowing revenues ahead.

Shares of BroadVision (Nasdaq: BVSN) picked up $2.25 to $26.06 on news the company would join the Standard & Poor's 500 index.

Among widely held PC stocks, Dell (DELL) shaved off 98 cents to $24.38; Gateway (GTW) closed off 95 cents to $49.82; Apple Computer (AAPL) slid $1.44 to $20.06 and Compaq Computer (CPQ) clipped $1.66 to $23.75.

Marvell Technology Group Ltd. (Nasdaq: MRVL) plunged $24.69 to $57.06 after announcing it will acquire Israeli semiconductor firm Galileo Technology Ltd. (Nasdaq: GALT) in a deal worth $2.7 billion. Galileo shares ended up 92 cents to $31.69.

Yahoo! (YHOO) fell $6.31 to $48.94. America Online (AOL) slid to a 52-week low, closing off $8.19 to $43.70. Amazon.com (AMZN) lopped off $2.38 to $21.94 while eBay (EBAY) and Lycos (LCOS) closed off $6.88 and $1 a share, respectively.

Sun Microsystems (SUNW) shed $3.19 to $111.38. Oracle (ORCL) shaved off 88 cents to $33.69 and Microsoft (MSFT) finished up 6 cents to $50.44.