Stocks declined today after a disappointing earnings report from Cisco Systems.
At 1 p.m., the Dow Jones industrial average was down 4.67 at 10,952.75. The Nasdaq composite index fell 84.07 to 2,580.42, and the Standard & Poor's 500 index declined 12.58 to 1,339.68
The high-tech losers included bellwether Cisco, which dropped $4.38 to $31.38 after announcing earnings late Tuesday that missed analysts' reduced expectations.
Also trading lower were Dow component Intel, down 69 cents at $34.75, and Nortel Networks fell $1.41 to $34.10. But other techs built on Tuesday's gains, including Microsoft, up 94 cents at $63.50.
Makers of chips used in networking equipment, including PMC-Sierra, Broadcom Corp. and Applied Micro Circuits, fell as investors bet that slower growth at Cisco would cut into their sales. PMC-Sierra fell $2.69 to $63.88, Broadcom dropped $2.75 to $89.75 and Applied Micro fell $2.25 to $52.81.
Cisco's report shows that the excess inventory of semiconductors and other parts that go into Cisco's products won't be corrected until the second half of this year, said Dan Niles, semiconductor analyst at Lehman Brothers.
Cisco rival Juniper Networks fell $2.19 to $100.
The so-called safe havens built on their recent gains. Johnson & Johnson rose $1.07 to $94.49, and 3M gained $2.34 to trade at $114.
Cnet Networks fell $1.44 to $14.44. The producer of Web sites and television shows about technology said it plans to cut 10 percent of its work force and reduced its forecast for 2001 revenue.
MicroStrategy slumped $2.69 to $14.25. The maker of data-delivery software said it expects revenue growth to slow to 30 percent in 2001 from 48 percent in 2000.
Metro One Telecommunications rose 63 cents to $32.25. The provider of telephone directory assistance said its fourth-quarter profit rose to 38 cents a share from 4 cents a year earlier.
PacifiCare Health Systems rose $5.73 to $30.48. The operator of Medicare health plans said it will beat 2001 earnings expectations even as it reported that fourth-quarter profit plunged 82 percent from a year earlier as medical costs rose and it took a restructuring charge.
MP3.com climbed 25 cents to $4.53. The online music provider said it will work with Qualcomm Inc. to develop a system to deliver digital music to wireless devices.
JDS Uniphase fell $1.69 to $50.13; Sun Microsystems gained $1 to $26.81; and Tyco International declined $1.20 to $59.75.
Hughes Electronics fell $1.11 to $26.60 following newspaper reports that the General Motors Corp. unit might be merged with News Corp.'s Sky Global Networks satellite business. News Corp. and GM have tentatively agreed on a merger value, the Wall Street Journal reported. Hughes currently trades as a GM tracking stock.
News Corp.'s U.S. shares rose $1.78 to $39.28.
Allstate rose 86 cents to $40.90. The No. 2 U.S. auto and home insurer said it earned 79 cents a share in the fourth quarter, beating analysts estimates by 7 cents on growth in its property liability, life insurance and retirement savings products.
Boston Scientific fell 71 cents to $15.41. The medical device maker said fourth-quarter profit, excluding charges, fell to 22 cents a share from 26 cents a year earlier as sales dropped 11 percent.