MIDDAY MARKETS: Nasdaq flirts with 2,000

2 min read

The economic climate continued to dominate news on Wall Street at midday Tuesday, though investors went bargain hunting for yesterday's big losers.

The Nasdaq rose 22.12 points to 1,945.50, not quite enough to take back the 2,000 mark. The Dow Jones industrial average shed 83.82 points to 10,124.43.

The Inter@ctive Week @Net Index rose 4 points to 185.89.

Companies seeing some buying today include Cisco Systems (Nasdaq: CSCO), up 97 cents to $19.78, and Sun Microsystems (Nasdaq: SUNW), up 94 cents to $18. Their losses yesterday contributed to the Nasdaq's fall of 62 percent from its all-time high of 5,000 last year.

Otherwise, the negative impact of the economy's slow down continued to rule financial news.

Shares of PSINet (Nasdaq: PSIX) fell 28 cents to 72 cents after the company said it had agreed to sell its e-commerce data communications unit for $300 million.

Motorola (NYSE: MOT), down 7 cents to $14.93, said it will cut 7,000 jobs in its cell-phone unit and take a charge against first- and second-quarter results in an effort to cut costs in the slowing sales environment.

Two profit warnings dented shares today.

WJ Communications (Nasdaq: WJCI) shed $1.25 to $3.19 after it warned that it will miss first-quarter revenue and earnings estimates due to a slowing economy and weakness in demand.

Integrated Silicon Solution (Nasdaq: ISSI), down $1 to $11.44, joined the warnings parade and said it will miss revenue and earnings for the second quarter.

In merger-related news, Novell (Nasdaq: NOVL) fell 66 cents to $5.16 as analysts questioned its acquisition of Cambridge Technology Partners (Nasdaq: CATP). Though the analysts said Novell got a good deal on Cambridge shares, a Lehman Brothers analyst said the two companies could have a tough time integrating.

Amazon (Nasdaq: AMZN) was up 13 cents to $10.75, AOL Time-Warner (NYSE: AOL) rose 70 cents to $39.97 and Yahoo (Nasdaq: YHOO) fell 62 cents to $15.75.

Most technology bellwethers were gaining ground. Intel (Nasdaq: INTC) rose 56 cents to $28.31, Oracle (Nasdaq: ORCL) increased 91 cents to $16.09 and Microsoft (Nasdaq: MSFT) was up $1.56 to $53.50.

ZDII staff and Reuters contributed to this roundup.