MIDDAY MARKETS: Techs slide, Dow retakes 11,000

Techs were lackluster after mixed economic news, while the Dow vaulted over the 11,000 mark again at midday Friday. The Nasdaq shed 4.38 to 3,755.61 and the Dow Jones industrial average climbed 107.32 to 11,016.08.

The Inter@ctive Week @Net Index fell 11 to 481.57.

U.S. wholesale-level inflation in July was unchanged, according to Friday's Producer Price Index report and the core rate matched market expectations. Another set of data on retail sales tempered the equity-market optimism early Friday.

Bullish comments from Goldman Sachs about the tobacco industry sent tobacco maker Philip Morris soaring and helped the Dow Jones industrial average surge past the 11,000 barrier.

Disappointing revenue figures help drive down shares of Dell Computer Corp. (Nasdaq: DELL) more than nine percent in morning trading. Shares were down 3 11/16 to 38 1/16.

Micron Technology Inc. (NYSE: MU), down 1/16 to 23 1/8, got a boost form two analysts Friday: PaineWebber started coverage of the firm with a buy rating, and UBS Warburg raised its price target on the stock.

Safeguard Scientifics Inc. (NYSE: SFE), down 1 3/4 to 23 1/8 said Friday that second-quarter income was 2 cents a share, much lower than the 11 cents a share reported in last year's quarter.

Wireless stocks Nextel Communications (Nasdaq: NXTL), up 1 1/8 to 53 7/8 and Sprint PCS (NYSE: PCS), up 3/16 to 53 11/16, should see some interest Friday after their price targets were upped. Banc of America Montgomery analyst Steven Yanis also set an acquisition price on Nextel.

PeopleSoft Inc. (Nasdaq: PSFT), down 7/16 to 23 9/16 has linked up with IBM Corp. (NYSE: IBM), up 5/8 to 120 3/8 in a co-marketing plan aimed at colleges and universities.

On the IPO front, Equinix (Nasdaq: EQIX) rose 1 to 13 after it priced 20 million shares at $12 each, the top of its $10 to $12 range. The deal was changed from original plan to offer 12.5 million shares at $15 to $17 each. Compugen (Nasdaq: CGEN) was up 2 1/2 to 12 1/2; it priced 5 million shares at $10 a piece, the bottom of its $10 to $12 range.

Yahoo! (Nasdaq: YHOO) fell 2 1/8 to 127 3/16 and AOL (NYSE: AOL) fell 3/8 to 51 3/8.

Among other leading tech issues: Intel (Nasdaq: INTC) fell 7/16 to 61 9/16, Microsoft (Nasdaq: MSFT) fell 5/8 to 72, Cisco (Nasdaq: CSCO) dropped 5/16 to 63 1/16 and Oracle (Nasdaq: ORCL) rose 5/8 to 80 11/16. >