Technology Sell-Off Lowers Market

Blue-chips tripped over tumbling technology stocks Monday, dumping a sizable gain, and the market ended mostly lower in volatile trading.

The Dow Jones industrial average - which sported double-digit increases for most of the day and was up about 40 points in the morning - abruptly reversed course and ended off 2.82 at 4,614.78.

Gainers outpaced losers by about 13 to 9 on the New York Stock Exchange where volume amounted 303.19 million shares as of 4 p.m. Eastern time compared to 312.03 million Friday. Broader indicators similarly deteriorated.

Heavy selling in semiconductor, software and related computer stocks took a toll on the Nasdaq Stock Market. Its composite index lost 11.58 to 1,019.70.

Periodic rounds of profit-taking have beset the technology group this summer because investors are eager to cash in some of their winnings amassed during this year’s rapid ascent in prices.

Some of the stocks that moved substantially or traded heavily:

NYSE

Upjohn, up 1-1/8 to 40-3/4 in NYSE-leading volume of more than 9.4 million shares.

The stock was in the spotlight following news that Upjohn will merge with Sweden’s Pharmacia in a $13 billion deal that underscores the intense competitive pressure on the global pharmaceutical business. Pharmacia shares rose 1-1/8 to 26-1/2 in heavy Nasdaq volume.

IBM, down 4-5/8 to 106-3/4.

Investors unloaded technology stocks amid reports that analysts who follow the industry have doubts about the income growth of certain companies.

Boeing, up 1-5/8 to 64-7/8.

The aircraft manufacturer reportedly is negotiating a sale of several types of aircraft to Air China.

NASDAQ

Intel, down 4-5/8 to 60-1/4 in Nasdaq-leading volume of more than 21.7 million shares.

The stock tumbled after reports circulated in the market that an analyst at Alex. Brown & Sons said the computer chip maker’s third-quarter earnings could come in lower than estimated. The drop in Intel incited a selloff in technology stocks in general.

Microsoft, down 2-5/8 to 94-1/2 in heavy Nasdaq volume of nearly 6.9 million shares

A federal judge approved an antitrust settlement Microsoft reached with the Justice Department more than a year ago to change the way the giant software company sells its key product. The order ended an unusually long judicial review of an antitrust case.