Dow jumps 130.61;
Associated Press
Nasdaq tumbles 150.41NEW YORK -- Technology stocks fell for a third straight session today as investors shifted money from the pricey shares that dominated trading in 1999 to blue-chip stalwarts like Caterpillar, 3M and Procter & Gamble.
The Dow Jones industrial average rose 130.61, or 1.17 percent, to close at 11,253.26.
The Nasdaq composite index, dominated by technology stocks, fell 150.41, or 3.88 percent, to 3,727.13. It was the second largest point loss in history for the Nasdaq, which has tumbled 8.41 percent since closing at a record on Monday.
The Standard & Poor's 500 rose 1.34 points to 1,403.45.
Advancing issues outnumbered decliners by a nearly 5-to-3 margin on the New York Stock Exchange, with 1,963 up, 1,132 down and 429 unchanged. NYSE volume totaled 1.08 billion shares vs. 1.07 billion yesterday.
The NYSE composite rose 6.47 to 627.54; the American Stock Exchange composite fell 1.12 to 857.76; and the Russell 2000 index of smaller companies fell 3.49 to 474.34.
The Treasury's benchmark 30-year bond climbed 23/32 point, or $7.18 per $1,000 face amount; its yield fell six basis points to 6.56 percent. Two-year yields fell 2 basis points to 6.33 percent.
Stocks continued the reversal of fortunes that has marked Wall Street this week. Technology stocks, which helped the Nasdaq composite to an unprecedented nearly 86 percent gain in 1999, have plummeted as investors lock in profits.
Meanwhile, cyclical companies, which thrive in a booming economy but languished last year in the frenzy for technology stocks, are soaring. "Investors are selling Yahoo! to buy Caterpillar," said Charles Pradilla, chief investment strategist at SG Cowen Securities in New York.
While analysts continued to discount much of the technology selloff as long-awaited profit-taking, fears of slowing profits for two high-tech firms depressed the sector today. Personal computer maker Gateway warned late yesterday its fourth-quarter earnings would miss expectations due to a slowdown in sales.