MIDDAY MARKETS: Warnings overshadow political news

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Disappointments from Compaq, Engage and Razorfish kept techs underwater at midday Wednesday, while the Dow rallied with relief that the presidential stalemate is drawing to a close.

The Nasdaq Composite Index dropped 32.06 to 2,899.71 and the Dow Jones Industrial Average was up 76.70 to 10,844.97.

The Inter@ctive Week @Net Index fell 6 to 366.57.

Shares of Compaq Computer (NYSE: CPQ) fell 1.95 to 18.82, following the company's fourth quarter warning. Compaq Computer's best chance of weathering the high-tech equivalent of the "Perfect Storm" may be its high-end computer and services business, analysts said.

Razorfish (Nasdaq: RAZF) plunged 35 percent, or 1.19 to 1.9, as analysts downgraded it following another fourth quarter warning, citing the firm's refusal to cut jobs and an impending cash crunch.

Analysts couldn't commit to Engage (Nasdaq: ENGA), down 0.63 to 1.34375, after the company reported a weak quarter and said it would give further guidance after it sorts out a restructuring. Most analysts maintained their ratings while holding out for what is expected to be yet another negative pre-announcement.

Internet Telephony company Net2Phone (Nasdaq: NTOP) rose 2.31 to 12.06 Wednesday, despite mixed reviews from analysts, after posting a smaller-than-expected loss in its first quarter.

General Semiconductor, Inc. (NYSE:SEM), off 2.19 to 8.18, said that fourth quarter and fiscal 2001 revenue and earnings will miss estimates due to slackening demand.

O2Micro International Ltd. (Nasdaq: OIIM), down 1.38 to 7.25, expects to miss revenue and earnings estimates for its fourth quarter, citing slowing market conditions and inventory concerns with customers.

Metro One Telecommunications, Inc. (Nasdaq: MTON), up 4.78 to 23.21, said it would beat earnings estimates for its fourth quarter by as much as 8 cents a share.

Cisco(Nasdaq: CSCO) fell 2.63 to 51.75, Intel (Nasdaq: INTC) shed 2.75 to 35.75, Oracle (Nasdaq: ORCL) dropped 1.13 to 29.625 and Microsoft (Nasdaq: MSFT) rose 0.31 to 58.69.

Amazon.com (Nasdaq: AMZN) fell 1 to 24.88, America Online (NYSE: AOL) dropped 0.15 to 48.5 and Yahoo (Nasdaq: YHOO) lost 0.06 to 35.75.