MIDDAY MARKETS: Techs miss out on rally

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Techs got left out of the rally at midday Monday, while blue-chips were inspired by hopes a meeting between Bush and Greenspan would lead to interest rate cuts. The Nasdaq lost 19.05 to 2,634.22 and the Dow Jones industrial average was up 202.49 to 10,637.45

The Inter@ctive Week @Net Index fell 16 to 318.38.

The Federal Reserve meets Tuesday, and some economists expect the central bank may lower borrowing costs next year and cut back on interest rates. President George W. Bush meets with Fed Chairman Alan Greenspan today.

EToys (Nasdaq: ETYS), down 0.75 to 0.28, may have only one alternative -- finding a bricks-and-mortar buyer, according to analysts. The big question is what is the company worth?

Amazon (Nasdaq: AMZN) fell 3.69 to 19.18, AOL (NYSE: AOL) lost 4.75 to 44.21 and Yahoo! (Nasdaq: YHOO) shed 2.44 to 30.56.

Digital Island (Nasdaq: ISLD) was off 0.94 to 5.06, or 16 percent Monday following a downgrade from Goldman Sachs. The investment firm downgraded three other Internet infrastructure companies on concerns of lower dot-com and enterprise spending. Covad (Nasdaq: COVD) fell 0.16 to 2, NaviSite (Nasdaq: NAVI) lost 0.5 to 3.06 and mPower was unchanged at 3

CMGI (Nasdaq: CMGI) said Monday that it is teaming with EMC (NYSE: EMC), up 0.94 to 69.06, to integrate the latter's storage technologies with a number of its own Web ventures, including the faltering search company, AltaVista.

Terayon Communication Systems Inc. (Nasdaq: TERN)dropped over 50 percent Monday, down 8.13 to 5.44, after the company said its fourth quarter results would be "significantly less" than anticipated.

Shares of Dialog Semiconductor (Nasdaq: DLGS) were hit hard Monday, dropping almost 12 to 7, after the company warned its earnings per share for 2001 would be much lower than 2000 levels.

Time Warner Inc. (NYSE: TWX), down 5.51 to 67.11, said Monday it would restructure its ownership in the Road Runner high-speed Internet service. Time Warner also reduced its earnings growth target, but said America Online's quarter was on track.

Cisco (Nasdaq: CSCO) shed 3.03 to 45.13, Intel (Nasdaq: INTC) gained 0.69 to 33.13, Oracle (Nasdaq: ORCL) rose 2.25 to 30.81 and Microsoft (Nasdaq: MSFT) fell 0.25 to 66.75.