Tech Stocks Lead Fall; Dow Off 51
NEW YORK (AP) _ Stocks pulled back this morning as the technology sector stumbled again amid a spate of profit warnings from computer-related businesses.
At noon on Wall Street, the Dow Jones industrial average was down 51.47 at 7,967.36 after surrendering an early 16-point gain.
Broad-market indicators also turned negative, with the technology-heavy Nasdaq composite index showing the biggest loss as investors bristled at discouraging forecast by 3Com.
Late Tuesday’s warning by the maker of computer modems and networking equipment followed a stream of disappointing comments earlier in the day by other technology companies.
Declining issues outnumbered advancers by a 6-to-5 margin on the New York Stock Exchange, where volume came to 254.74 million shares, down slightly from Tuesday’s pace.
The Standard & Poor’s 500 list was down 4.52 at 967.16, the NYSE composite index was down 1.59 at 506.05, and the American Stock Exchange composite index was down 0.16 at 665.54.
The Nasdaq composite was down 13.61 at 1,592.76 at 1,595.30. 3Com was down 2 13/16 at 32 1/2 and Cisco Systems, the bellwether of the networking industry, was down 2 3/16 at 84 5/16 as two most active Nasdaq issues.
The Dow’s weakest components were 3M, down 1 7/8 at 96 7/16; International Paper, down 1 5/8 at 47 5/8; and Caterpillar, down 1 9/16 at 49 3/8.
Overseas, Tokyo’s Nikkei stock average fell 1.9 percent, Frankfurt’s DAX index rose 0.2 percent and London’s FT-SE 100 fell 0.1 percent.