U.S. Stocks Close Lower

Stocks ended lower Friday, as technology stocks continued to slide. Shares of Internet brokerages and computer-chip makers posted the steepest declines, but every part of the high-tech sector was hit by the sell-off.

At the close of trading on Wall Street, the Dow Jones industrial average was down 0.26 points at 9,304.24.

An overall weakness in technology stocks was compounded by the chip makers, which some analysts expect to launch a price war as competition heats up between Intel and Advanced Micro Devices.

The continued decline of technology stocks has worried some analysts about the impact on the broader market. High-flying tech companies have been largely responsible for the market's overall advances, leading some to fear that once the technology bubble burst, the entire market will cave in.

Friday, however, many analysts said the losses were primarily due to investors cashing in their technology stocks to lock in some of their recent gains.

Brokerage stocks were lower across the board, from blue-chip firms like Merrill Lynch, which fell 2 11/16 to 70 3/8, to online brokerages, which began tumbling Thursday after New York state's attorney general announced an inquiry into their business practices. E*Trade Group Inc., which was hampered by technical difficulties on several occasions Wednesday through Friday, fell 5 7/8 to 47 5/8.

Stocks were also held back by a government report that showed the U.S. unemployment rate held steady in January at a 28-year low of 4.3 percent. The strong report rekindled fears that the Federal Reserve will raise interest rates.

Meanwhile, yields on 30-year bonds climbed to 5.33 percent from 5.29 percent just before the data were released. The price, which moves in the opposite direction, tumbled early in the day before recovering during the afternoon.

The initial public offering calendar was heavy, with six companies taking their bows Friday. Pacific Internet (PCNTF) zoomed 31 to 48. The Singapore provider of Internet services sold 3 million shares at the top end of its anticipated price range of $15 to $17 each.

Delphi Automotive Systems (DPH), a unit of General Motors, fell 1 7/16 to 18 7/16 after selling 100 million shares at $17 each in its IPO. The world's biggest auto parts manufacturer had initially expected the shares to be priced between $15 and $18.

A few pockets of the market provided shelter from the liquidation in the technology arena. Basic resource groups like paper, chemical, and energy look increasingly attractive to money managers seeking segments poised to benefit from the U.S. economy's stand-up growth.

Among nonferrous metals stocks, Aluminum Co. of America added 2 13/16 to 89 1/2, Phelps Dodge 2 5/16 to 49 13/16, and Inco 7/8 to 12 1/16.

Internet stocks fell for the fourth day in the last five. But Lycos (LCOS) rose 7 5/8 to 137 after trade publication The Industry Standard, citing sources familiar with the situationreported that General Electric's (GE) NBC unit may buy a 35 percent stake. GE stock fell 1 3/16 to 98 15/16.

In Friday's market indicators:

• The Standard & Poor's 500 Index fell 0.7 percent.
• New York Stock Exchange losers easily outpaced winners by 1773 to 1154.
• On the Big Board floor, turnover rose 2 percent to 868 million shares.
• Advancing issues lagged decliners by more than 3 to 2 in the Nasdaq Stock Market. Volume totaled 1.01 billion shares. The Nasdaq Composite closed down 36.45 at 2373.62. For the week, the Nasdaq index lost 132.27.
• The Russell 2000 Index of small-company stocks sank 1.2 percent.

• Electronic Data Systems (EDS) posted fourth-quarter operating results of 53 cents a share, a penny more than the consensus Wall Street forecast according to First Call Corp. The computer services concern earned 57 cents in the year-ago period. Revenue grew 9 percent. The shares stumbled 3 7/8 to 48 1/8.
• CBS Corp. (CBS) climbed 5/16 to 36 1/8 after recording fourth-quarter operating earnings of 2 cents a share. A survey of analysts by First Call Corp. had indicated a consensus estimate of a penny a share. Higher advertising revenue at its television and radio stations bolstered results. (Editor's note: CBS Corp. holds a significant stake in CBS.MarketWatch.com.)
• SCI Systems (SCI) fell 7 5/8 to 35 5/16 Fiscal second-quarter profits totaled 48 cents, 2 cents less than what the First Call Corp. consensus view of Street analysts had called for. The electronic component manufacturer said "market conditions and pricing in several product areas appear to be degrading somewhat." It cautioned that March and June quarter revenue and earnings figures will not meet earlier expectations but should meet or exceed year-earlier results.
• Sterling Commerce (SE) sagged 9 15/16 to 32 1/2 after matching the First Call Corp. consensus prediction with its fiscal first-quarter net of 33 cents a share. The developer of business-to-business electronic commerce software earned 26 cents in the same period a year ago.
• Avid Technology (AVID) sailed ahead 3 33/64 to 32 after blowing away most Street predictions with its fourth-quarter operating net of 57 cents a share. A survey of research analysts by First Call Corp. had called for 22 cents. The company said its success was due to favorable domestic and European demand for its film and video products. Avid provides digital audio and video tools for creating content for information and entertainment applications.
• CD Radio (CDRD) surrendered 7 1/8 to 25. It pushed back the launch of its broadcast service by six to nine months beyond the previously scheduled date of the second quarter of 2000. The developer of satellite-delivered radio systems cited equipment delivery delays by some of its suppliers as the reason for the postponement. Lehman Brothers sliced its price target to $55 from $6.
• Shop At Home (SATH) rose 3 7/16 to 25 1/8. It will broadcast its home shopping program on the DISH network of Echostar Communications.
• Advanced Micro Devices (AMD) shed another 2 1/8 to 16 13/16. On the week, it's off about 27 percent. Late in Thursday's session, the maker of microprocessor chips said it will probably record a first-quarter loss. Most analysts surveyed by earnings compiler First Call Corp. had predicted a profit of 13 cents a share. AMD blamed pricing problems tied to its market share battle with Intel.
• Micron Technology (MU) subtracted 5 3/8 to 70 1/4 on concerns that Samsung may enter the market for memory chips.