NEW YORK - Technologies fell on Monday, as angst over falling profit growth plagued the sector after Apple Computer's warning last Thursday that its profits would be lower than expected.
"Lowered expectations for the whole economy does put a crimp in technology and emerging growth companies' growth prospects," Scott Bleier, chief
investment strategist at Prime Charter said.
The Dow Jones average index of 30 industrials closed 49.21 points - or 0.46 percent - up, at 10,700.13 - bolstered by IBM and J P Morgan.
On Monday - after the close - copier-machine heavyweight Xerox said it would probably post a loss of 15USc to 20USc a share in the third quarter.
It blamed weak revenue in North America and Europe, competitive pressures and foreign-exchange rates. Xerox closed 1/4 up at $US15 5/16.
Prospects for a slower pace of US economic growth and sharply higher energy prices, plus the US dollar's persistent strength against the euro, Europe's single currency, the euro, had rung alarm bells because of their potential to crimp profits.
Oil services companies shone after the price of crude oil crept higher again, stoked by renewed tensions in the Middle East and concerns over a shortage of heating-oil in the US.
Leading shares on London's FTSE closed slightly down on Monday after late sales of major drug and telecom names wiped out the modest gains that existed for most of the day.
Fourth-quarter strategy notes from Lehman Brothers and Deutsche Bank highlighted so-called "old-economy" shares.
"Our bias remains heavily skewed towards the 'old-economy' areas of the market, because it is here that current multiples look most attractive, both relative to British interest rates and the overseas' peer group," Lehman strategist, Ian Scott said.
