Investors' Love for Tech Stocks Fades
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After outperforming its blue chip counterparts for more than a month, the technology sector fell out of favor on Monday, losing ground even as blue chip stocks finally rallied.
The Nasdaq lost 0.6%, while the Dow rose by that much despite a steep loss at Lehman Brothers (NYSE: LEH) and another rough day for financial stocks.
Apple (NASDAQ: AAPL) fell 2% on heavy volume despite unveiling its long awaited 3G iPhone. Competitor Research in Motion (NASDAQ: RIMM) rose 2%, while Palm (NASDAQ: PALM) shed 4%.
VMware (NYSE: VMW) fell 3% on a UBS report that employee-controlled shares could begin trading this week.
AMD (NYSE: AMD) continued to gain on rival Intel's (NASDAQ: INTC) antitrust woes, rising 3% as Intel lost 0.6%.
After the close, Texas Instruments (NYSE: TXN) said its sales could top Wall Street estimates this quarter, yet its shares moved little in after-hours trading. TI's first quarter results in April missed estimates.
The Nasdaq lost 15 to 2459, the S&P rose 1 to 1361, and the Dow rebounded 70 to 12,280. Volume declined to 4.37 billion shares on the NYSE, and 2.13 billion on the Nasdaq. Decliners led by a 21-11 margin on the NYSE, and 19-9 on the Nasdaq. Downside volume was 65% on the NYSE, and 66% on the Nasdaq. New highs-new lows were 65-167 on the NYSE, and 50-205 on the Nasdaq.