Technology Sell-Off Restrains Market

Stocks closed mixed Monday as profit-taking in technology issues dragged the broad market lower while sparing blue chips.

Uncertainty about interest rates on the eve of a Federal Reserve policy meeting struck a somber note on Wall Street even though the investment community has virtually ruled out chances of lower rates in the immediate future.

Trading on Wall Street fell during the observance of the Jewish New Year. Volume on the New York Stock Exchange amounted to 273.11 million shares as of 4 p.m. Eastern time, down from 370.79 million Friday.

Blue chips managed to finish positively after the Dow Jones industrial average bounced back from about a 20-point decline. It rose 5.78 to 4,769.93.

But losers beat gainers by about 13 to 9 on the Big Board and most measures of market activity made minor moves.

Heavy selling in technology stocks hurt the Nasdaq Stock Market, which lists numerous computer and related issues.

Some of the stocks that moved substantially or traded heavily:

NYSE

Potomac Electric Power, up 1-3/4 to 23-1/4.

The stock rose in response to news that Baltimore Gas and Electric will acquire Potomac Electric Power for about $3.1 billion in stock in a merger that will create one of the nation’s biggest power companies with assets exceeding $15 billion. Baltimore Gas fell 1-1/4 to 24-7/8.

Micron Technology, down 3-3/4 to 82 in NYSE-leading volume of more than 5.8 million shares.

Profit takers targeted selected technology issues amid concerns about profitability.

Silicon Graphics, up 1-7/8 to 34-7/8.

Shares rebounded from a slump Friday that market analysts said was tied to worries about the impact of Hewlett-Packard’s acquisition of Convex Computer.

NASDAQ

Brooklyn Bancorp, up 2 to 38-7/8.

The stock was lifted by news that Republic New York will buy the company for $529.6 million in cash and pay shareholders $41.50 a share. Republic rose 1/8 to 57-5/8.

Intel, down 1/2 to 60 in Nasdaqleading volume of more than 9.4 milion shares.

Shares of semiconductor companies came under pressure after several prominent technology companies - including Intel customers - warned Wall Street about possible earnings disappointments.

Apria Healthcare, down 4-3/4 to 24.

The stock’s investment rating was cut to “attractive” from “buy” by PaineWebber.