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Tech Industry

Investors pocket profits

After posting strong gains this week, the Dow and Nasdaq lose ground as investors take some short-term profits.

Investors cashed out some profits Friday, pushing the Dow Jones industrial average down 114 points to 10,579.85, while the Nasdaq composite shed 19 points to close at 2,163.18.

For the week, the Dow hustled up 453 points, and the Nasdaq moved up 202 points.

"Investors should be thrilled if the market retreats and gives up only half of the gains we saw in the last few days," John Forelli, portfolio manager at Independence Investment told Reuters. "If we then start inching up from there, that would be a definite victory for the market."

Microsoft picked up 96 cents to $69 after reporting strong third-quarter results. Oracle trimmed 57 cents to $19.75, and Sun Microsystems closed off $1.06 to $19.65.

Ericsson fell $1.17 to $5.91 after absorbing a downgrade from Goldman Sachs following its disappointing first-quarter results. Competitor Nokia shed 15 cents to $31.45 after beating its first-quarter targets but lowering numbers for future quarters.

"Nokia may be the cause of the turnaround, but more so I would say it's just a case of vertigo, a little fear of height at these levels in the major indices," Art Hogan, chief market analyst at Jefferies & Co. told Reuters. "We've had three very strong days in a row, so it's difficult to hold on to that kind of pace," he added.

Among widely held PC stocks, Dell Computer trimmed 37 cents to $30.12, Compaq Computer lost 35 cents to $21.50, Gateway inched up 14 cents to $18.16, and Apple Computer closed off 68 cents to $25.04.

Online auctioneer eBay tacked on 64 cents to $50.63 after it reported a strong first quarter. But analysts said the company may have trouble keeping up with ever-increasing expectations.

AOL Time Warner fell $1.21 to $48.69. Amazon.com dropped 21 cents to $15.78, while Yahoo trimmed 11 cents to $19.85.

Business-to-business software company Ariba matched reduced earnings expectations for the second quarter, but saw revenue fall about $10 million short of analysts' expectations. Its shares finished up 73 cents to $7.76.

Competitor Commerce One reported a loss of $25.5 million, or 11 cents per share, in the first quarter, matching the lowered expectations set by Wall Street analysts. Its shares lost $3.31 to $10.40.

Cisco Systems picked up 24 cents to $19.15. Nortel Networks slid 85 cents to $16.95, and Lucent Technologies closed up 47 cents to $9.51.

Intel clipped 6 cents to $32.43. Advanced Micro Devices nudged up 9 cents to $29.10, and IBM added 36 cents to $114.83.

Staff and Reuters contributed to this report.