Tech Stocks Fall on Profit-Taking
Blue-chip stocks treaded water yesterday, but the broad market declined on profit-taking in semiconductor stocks and concern over comments by a Fed governor on the outlook for inflation.</br></br>The Dow Jones Industrial Average crept up 2.21 points to 11036.34 after spending most of the day in negative territory. But Standard & Poor's 500-stock index eased 6.3 points, or 0.5%, to 1344.15, and the Nasdaq Composite fell 28.52 points, or 1%, to 2808.74.</br></br>Dominating the technology scene was a midday reversal in semiconductor stocks led by Intel, which went from up $1 on the day to fall $1.6875 to $85.9375. The Philadelphia Stock Exchange semiconductor index fell 1.7%, but it is up 45% from late May.</br></br>"The fact the index, as well as some higher-profile components like Micron Technology and Texas Instruments, were making 52-week or all-time highs triggered alarm among some investors who thought the air was feeling kind of thin," Ciaran O'Kelly, a stock trader at Salomon Smith Barney, said. They "decided to take some money off the table."</br></br>There is speculation Intel will announce that third-quarter earnings are expected to be above current analysts' estimates. If so, it will likely be soon since the company enters its "quiet period" Monday ahead of reporting earnings Oct. 12. An Intel spokesman declined to comment.