Wall Street cuts tech ratings
Analyst downgrades of high-profile computer companies and another rocky day of trading in Hong Kong hit major technology issues hard Thursday, cutting the NASDAQ Composite Index 8.42 points to 1594.33 at midday.
After a sluggish start, the Dow Jones Industrial Average managed to climb 6.38 points to 7513.05.
Major brokerage firms downgraded companies including Intel Corp., Compaq Computer Corp. and Dell Computer Corp.
UBS Securities cut Intel's rating from "buy" to "hold," sending the stock down $1.38 per share to $78.88. NationsBank Montgomery Securities slashed its rating on Micron Technology Inc. from "buy" to "hold." Micron shares lost 56 cents per share to $26.69.
Texas Instruments Inc. shed $4.19 per share to $110.25 while National Semiconductor Corp. was off 50 cents per share to $35.19.
Compaq and Dell were both downgraded by Alex Brown from "strong buy" to "buy" ratings. Dell slid $1.31 per share to $82.19 while Compaq gained 69 cents per share to $64.13. Gateway 2000 Inc. was off 19 cents per share and IBM picked up 56 cents per share to $98.81.
Silicon Graphics Inc., which announced Wednesday it would layoff up to 1,000 employees and the resignation of CEO Ed McCracken, was down 88 cents per share to $14.88. Apple Computer Inc. was down 38 cents per share to $17.13.
Among other technology blue chips, Microsoft Corp. was up 25 cents per share to $131.13 and Oracle Corp. gained 63 cents per share to $35.69.
One of the few early winners was Electronic Data Systems Corp. which rose $4 per share, or 12 percent, to $36.63 after reporting better-than-expected earnings in its third quarter. Deutsche Morgan Grenfell boosted the stock's rating from "hold" to "accumulate."
Yahoo! Inc. shares picked up $1.75 per share to $43 and Excite Inc. gained 31 cents per share to $24.38.
WorldCom Inc., which beat Street estimates in its third quarter, was down 31 cents per share to $33.69. MCI Communications Corp. was also down 31 cents per share to $35.44, and GTE Corp. shares rose $1.25 per share to $43.25.