By Rex Crum
Technology stocks were in a fight for gains Tuesday morning as
the sector tried to build upon the prior session's broad advance
and Applied Materials Inc. set a deal to acquire chip-equipment
maker Semitool Inc.
Among leading tech stocks, gains came from Microsoft Corp.
(MSFT), Cisco Systems Inc. (CSCO), Research In Motion Ltd. (RIMM)
and Broadcom Corp. (BRCM).
However, the tech-heavy Nasdaq Composite Index (RIXF) fell more
than 10 points to 2,187, while the Morgan Stanley High Tech 35
Index (MSH) and the Philadelphia Semiconductor Index (SOX) also
lost ground.
Decliners included Apple Inc. (AAPL), Oracle Corp. (ORCL), IBM
Corp. (IBM), Dell Inc. (DELL), EMC Corp. (EMC) and Intel Corp.
(INTC).
Semitool (SMTL) shares soared $2.54, or more than 30%, to $10.94
after Applied Materials (AMAT) said it would acquire the company
for $364 million, or $11 a share.
Semitool, based in Kalispell, Mont., makes technology used in
the cleaning and preparing of semiconductor wafers.
Applied Materials, the world's largest semiconductor gear maker,
said the deal will help it expand its line of chip-making
equipment.
Applied Materials shares slipped 5 cents to $13.01.