By Rex Crum
Technology stocks scratched out some small gains in afternoon
trading Tuesday, but many sector leaders were still in the red 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),
Hewlett-Packard Co. (HPQ) and IBM Corp. (IBM).
The tech-heavy Nasdaq Composite Index (RIXF) came back from
earlier losses to edge up 1.3 points to 2,199, while the Morgan
Stanley High Tech 35 Index (MSH) and the Philadelphia Semiconductor
Index (SOX) 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 $2.55, or more than 30%, to $10.95
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.
Earnings reports after the market close were expected from
Salesforce.com Inc. (CRM) and Autodesk Inc. (ADSK).