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CNNfn tech stock report
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September 25, 1998: 5:41 p.m. ET
Big caps, Internet stocks help rescue Nasdaq after Friday's rocky start
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NEW YORK (CNNfn) - Helped by strong gains from big names, technology stocks recovered from Friday's rocky start prompted by Thursday's hedge fund worries.
After going below the 1,700 level, the Nasdaq Composite recovered to end up 23.25 to 1,743.59 on volume of almost 701 million shares. Declines outpaced advancers by about a 7-to-6 margin.
Large-cap stocks played a big role in Friday's recovery. Some of those leading the way included Microsoft Corp. (MSFT) which gained 2-15/16 to 113-1/16 and Intel Corp. (INTC) gained 3 to 88-5/16.
Lehman Brothers initiated coverage on Intel Friday with a "outperform" rating. The firm said optimism over a semiconductor industry recovery will help the company.
Dell Computer Corp. (DELL), gained 2-3/4 to 66-1/16 and Cisco Systems Inc. closed up 1-1/2 to 66-7/16.
Among the Dow components, IBM Corp. (IBM) rose 2-15/16 to 133-1/2 and Hewlett Packard Co. (HWP) which rose 13/16 to 54-3/16.
Most of the leading players in the volatile Internet plays headed higher Friday. Online book and music retailer Amazon.com Inc. (AMZN) jumped 7-1/8 to 109-1/4 and America Online Inc. (AOL) rallied 2-5/8 to 114-3/4.
Salomon Smith Barney reiterated its "buy" rating on the stock. The company on Monday will launch a new marketing campaign to promote the latest version of its access software.
Other gainers included search engine Yahoo! Inc. (YHOO), up 5-3/4 to 121 and Internet marketer CMG Information Services Inc. (CMGI) gained 2-9/16 to 57-1/8 after reporting a smaller-than-expected quarterly loss Thursday.
Shares of Internet broadcaster Broadcast.com Inc. (BCST) shed some of their luster Friday, losing 2 to 48-1/2. However, the stock turned in an impressive $14 gain for the week.
The day's losers included wireless phone equipment maker Anadigics Inc. (ANAD) which plunged 3-3/8 to 7-13/16. The drop was prompted by a warning that third-quarter sales are expected to be $1 million less than last quarter's $22.7 million.
The company also plans to take an $8 million charge to correct inventory problems.
Computer Sciences Corp. (CSC) shares dropped 6-7/16 to 62-9/16 after Morgan Stanley Dean Witter Discover cut its rating to "neutral" from "outperform."
Video game maker Electronic Arts Inc. (ERTS) lost 3-3/4 to 39-7/8 after warning shipments of its new SimCity 3000 game may be delayed.
American Depository Receipts of Israel's Nice Systems Inc. (NICEY) plunged 11-3/16 to 18-5/8 after the maker of voice and fax archiving equipment warned third-quarter earnings will be lower than expected.
The company attributed the warning to a slowdown in orders and problems with its new product line.
For the latest information on technology, tune into CNNfn's "Digital Jam" weeknights at 7:30 p.m. ET or click here to watch the program via Microsoft NetShow. 
--by staff writers Cyrus Afzali and Brendan Hasenstab
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