Techs stand still as blue chips rise

Technology stocks stagnate as investors pour money into blue chip industrial stocks.

2 min read
Technology stocks stagnated Monday as investors poured money into blue chip industrial stocks.

"We saw relative strength in the Nasdaq last week and now the Dow is playing a little bit of catch up," said Peter Coolidge, managing director of equity trading at Brean Murray & Co., as the Dow piled on gains. The Nasdaq composite index fell 10.19 points to 1,918.49. The Dow Jones industrial average rose 182.75 points to 9,687.53. The S&P 500 gained 12.86 points to 1,152.69.

One of Monday's biggest gainers was C-Cube Microsystems, which soared $4.94 to $13.75 after LSI Logic, down $2.68 to $18.01, on Monday said it will snap up the company in a stock swap valued at around $878 million. LSI said the deal will boost its position in the broadband entertainment market.

Communications chip company PMC-Sierra, off $1.68 to $32.26, on Monday warned it would miss revenue and earnings expectations for the first quarter, citing weak demand and cancelled orders.

Competitor Conexant Systems, off 63 cents to $10.50, also warned Monday that second-quarter revenue would be down as much as 40 percent. It said it would let go 1,500 people, or about 20 percent of its work force.

Transmeta jumped $2.81 to $18.81 after it announced a joint effort with Microsoft to produce a number of development-stage Tablet PC machines that will be widely distributed. Microsoft was off 50 cents to $56.06.

Among heavily traded stocks, AOL Time Warner rose $1.42 to $40.94, Cisco Systems fell 81 cents to $17.88 and Intel slid 50 cents to $28.31. Sun Microsystems retreated $1.01 to $17.24, and Dell Computer dropped $1.75 to $25.69. WorldCom rose $1.13 to $18.

Staff and Reuters contributed to this report.