Stocks fell Tuesday as a rally by tech shares ran out of steam. Coincidentally, and inconveniently for many, technology went sour in the San Francisco Bay Area, with a massive power outage knocking the Pacific Stock Exchange out of commission.
The Wired Index shed 1.22 points to close at 478.92, and the Dow Jones Industrial Average ended 42.49 lower at 9027.98. The Nasdaq slid 5.89 to 2034.75, and the S&P 500 was down 6.32 at 1181.38.
The big deal of the day concerned AT&T (T) agreeing to purchase the global network business of International Business Machines (IBM) for US$5 billion. AT&T's stock advanced $2.25 to $67 and IBM gained $1 to $168.19.
Elsewhere in tech, Dell Computer (DELL) fell $1 to $66.63, while Intel (INTC) was up $1.13 at $120.06. Microsoft (MSFT) lost $2.38 to $131.19, and Cisco Systems (CSCO) ended 38 cents lower at $79.81.
Internet stocks were again a hot pick as investors geared up for Wednesday's initial public offering by Xoom.com. America Online (AOL) gained 69 cents to $90.38, and Yahoo (YHOO) was up $7.94 at $198.50. Amazon.com (AMZN) climbed $13.06 to $204.06, and eBay (EBAY) racked up another $2.63 to close at $176.88.
PeopleSoft (PSFT) inched 13 cents higher to $19.94 after saying it will acquire privately held Distinction Software for between $5 million and $10 million. The business application maker plans to incorporate Distinction's demand-planning functions into its suite of enterprise programs.
Lastly, Sony (SNE) slipped 44 cents to $74.81 after issuing a "voluntary" recall of approximately 60,000 cellular phones found to exceed maximum allowable power output and thus pose a threat to users' health and well being.
Those in the Bay Area who went without their electronic gadgets for much of the day might consider this a small price to pay.
