Intel and Microsoft were added to the Dow Jones industrial average Tuesday but the move did little to boost technology stocks as the Nasdaq composite fell 5 points to 2,811.27. The Dow closed off 48 points to end at 10,302.13.
Dow Jones & Co. Inc. surprised Wall Street with those changes to the 30 companies comprising the Dow industrials, including the addition of heavyweights Microsoft Corp. (Nasdaq: MSFT) and Intel Corp. (Nasdaq: INTC).
Microsoft shares closed off 1/16 to 92 3/8 and Intel added 7/64 to 71 23/64.
Consumer confidence slumped to 130.1 in October, its fourth straight month of decline, the Conference Board said Tuesday. The tumble signals concern over turbulent markets and the threat of rising interest rates. Confidence isn't about to get any better with the threat of further rate hikes ahead from the Federal Reserve Board.
Internet stocks took it on the chin Tuesday.
America Online Inc. (AOL) fell 2 5/8 to 118 5/8. Yahoo! Inc. (YHOO) inched up 1/4 to 179 while Lycos Inc. (LCOS) and Amazon.com Inc. (AMZN) closed off 3 1/2 and 1 1/2 a share, respectively. Excite@Home Corp. (ATHM) dropped 1 7/16 to 38 3/8 and Infoseek Corp. (SEEK) shed 5/16 to finish at 28 7/8.
NetBank Inc. (Nasdaq: NTBK)'s shares got a boost, jumping 1 5/16 to 21 3/4 after the company announced it has signed its first major portal agreement with Microsoft's MSN MoneyCentral.
AppNet, Inc. (Nasdaq: APNT) fell 7 to 49 after it reported a third quarter operating profit of 5 cents a share, two pennies above First Call's prediction of 3 cents a share. The company also announced a secondary offering of 4 million shares.
Bamboo.com Inc. (Nasdaq: BAMB) rose 3/4 to 17 after it and Interactive Pictures (Nasdaq: IPIX) announced they will merge in a stock swap. Both companies also reported quarterly losses.
Lucent Technologies (NYSE: LU) cruised past Wall Street estimates. Its shares closed up 3 to 62 7/8. Cisco Systems Inc. (Nasdaq: CSCO) added 3/4 to 67 1/4 and 3Com Corp. (COMS) closed up 1/16 to 27.
Among widely held PC stocks, Dell Computer Corp. (DELL) inched up 3/8 to 39 9/16; Compaq Computer Corp. (CPQ) gained 1/2 to 19 7/16 ahead of its earnings report; Gateway Inc. (GTW) rose 5/8 to 63 1/4 and Apple Computer Inc. (AAPL) moved up 9/16 to 75 1/16.
Sun Microsystems Inc. (SUNW) lost 1 11/16 to 91 1/4 and Oracle Corp. (ORCL) inched up 1/8 to 43 7/16.