Market reacts to tech ratings cuts

A series of stock downgrades and another rocky day of trading in Hong Kong hit major technology issues hard Thursday, cutting the NASDAQ Composite Index 32.32 points to 1570.43 and sending the Dow Jones Industrial Average tumbling 121.31 points to 7385.36.

Technology stocks started down and never recovered after major brokerage firms downgraded companies such as Intel Corp., Compaq Computer Corp, and Dell Computer Corp.

UBS Securities cut Intel's rating from "buy" to "hold," sending the stock down $4.13 per share to $76.13. Nations Bank Montgomery Securities slashed its rating on Micron Technology Inc. from "buy" to "hold." Micron shares lost $1.94 per share to $25.31.

Texas Instruments Inc. shed $11.19 per share to $103.25 while National Semiconductor Corp. fell $1.13 per share to $34.38.

Compaq and Dell were both downgraded by Alex Brown from "strong buy" to "buy" ratings. Dell slid $4.81 per share to $78.69 while Compaq fell $2.38 per share to $61.06. Gateway 2000 Inc. was off 94 cents per share and IBM lost $2.06 per share to $96.19.

Silicon Graphic Inc., which announced Wednesday it would layoff up to 1,000 employees, closed down $1.38 per share to $14.38. Apple Computer Inc. was off 88 cents per share to $16.63.

Among other technology blue chips, Microsoft Corp. sank $1.81 per share to $129.06 and Oracle Corp. shed 56 cents per share to $34.50.

One of the few early winners was Electronic Data Systems Corp. which rose $4.69 per share, or 13 percent, to $37.31 after reporting better-than-expected earnings in its third quarter. Deutsche Morgan Grenfell also boosted the stock's rating from "hold" to "accumulate."

Yahoo! Inc. shares picked up 75 cents per share to $42 but Excite Inc. lost 69 cents per share to $23.38.

WorldCom Inc., which beat Street estimates in its third quarter, lost $1.31 per share to $32.88. MCI Communications Corp. was also down 50 cents per share to $35.25 but GTE Corp. shares rose 43 cents per share to $42.44.