Stocks were mostly lower today as investors locked in gains from Friday's rally in technology shares. Continued weakness in the dollar held down the broader market.
At 3 p.m., the Dow Jones industrial average was down 3.17 at 11,025.26. The blue-chip index had been down for most of the session, trading in a narrow range.
Broader stock indicators were lower. The Standard & Poor's 500 index was down 6.83 at 1,344.83, and the Nasdaq composite index dropped 22.48 to 2,864.58.
Traders said investors, who sent the technology-dominated Nasdaq to a new closing record of 2,887.06 on Friday, were ready to sell today in hopes of capturing profits. Yahoo! fell 5 3/8 to 165 1/8 , and eBay dropped 4 3/4 to 153 1/4 .
America Online fell 5 3/1 6 to 91 1/8 . Traders attributed the drop to an article in Barron's magazine in which a short seller -- an investor who bets that the price of a stock will fall -- said AOL's stock price could be cut in half as a result of price competition. In a short sale, a trader sells borrowed stocks on the expectation the price will fall before the stock has to be repurchased on the open market to complete the deal.
3Com Corp. rose 1 3/8 to 28 5/8 after saying it will spin off its Palm Computing unit, the maker of Palm electronic organizers.
General Instrument Corp. fell 1 5/1 6 to 51 3/1 6. Motorola Inc., a maker of semiconductors and mobile phones, is negotiating to buy the company, which makes cable and satellite television equipment, for about $10 billion in stock, the Wall Street Journal said, citing people familiar with the talks. Motorola declined to comment. General Instrument's chief executive, Edward Breen, said the company would comment on the story later today.
Motorola fell 6 3/4 to 92. Broadcom Corp., a General Instrument rival, tumbled 7 1/2 to 111 1/2 .
Among Dow components, J.P. Morgan was the steepest decliner, dropping 2 1/4 to 125 1 3/1 6. International Paper rose 2 1/4 to 53 9/1 6, continuing a recent wave of strength in paper stocks.