RealTime IT News

Tech Gains Slip Away

A rally to new multi-year highs on the Nasdaq and S&P faded Tuesday after profit-taking began in the futures market and spread to stocks.

Stocks were in early rally mode after a government report showed strong productivity gains and low wage pressures during the third quarter, easing inflation fears ahead of a Federal Reserve meeting next week.

Tech stock gains came courtesy of the letter A:

Adobe rallied 5% after completing its acquisition of Macromedia.

Apple climbed 3% to a new all-time high after UBS raised earnings estimates on the company.

And Altera gained 6% after reaffirming guidance, raising hopes for mid-quarter updates later this week from Texas Instruments and Intel .

Still, the good news wasn't enough to keep sellers at bay, as stocks ended the day well off their highs.

The Nasdaq added 3 to 2260, the S&P 500 climbed 1 to 1263, and the Dow rose 21 to 10,856. Volume declined to 2.14 billion shares on the NYSE, but rose to 1.85 billion on the Nasdaq. Advancers led 18-15 on the NYSE, and 16-14 on the Nasdaq. Upside volume was 61% on the NYSE, and 61% on the Nasdaq. New highs-new lows were 221-63 on the NYSE, and 206-41 on the Nasdaq.

Maxim gained 4% after raising guidance.

Brocade and Comtech fell on their results.