PC and storage makers lead hardware rebound
Storage Tech and EMC notch gains; Lucent buys
By Brenon Daly, CBS MarketWatch
Last Update: 10:59 AM ET Jun 25, 1999 Silicon Stocks
Tech Report
NEW YORK (CBS.MW) -- Shares of major hardware technology companies rebounded Friday morning, led by companies that make storage devices and personal computers.
The Goldman Sachs Computer Hardware Index rose 1.2 percent, after a 1.7 percent decline in the previous session. Standouts on the index included: Storage Technology (STK: news, msgs) up 1 3/16, or 6.2 percent, to 20 3/8 and EMC up 1 1/8 to 54 1/8.
After a miserable previous session, the Philadelphia Semiconductor Index edged 0.5 percent higher. The index, which tracks 16 chip and chip equipment makers, is up 29 percent so far this year.
The lone drag on the chip index was Rambus (RMBS: news, msgs), which shed 8 1/4, or 8.4 percent, to 89.
In news about individual technology company, Lucent Technologies said it's buying privately held Nexabit Networks for $900 million in stock.
Under the long-rumored agreement, Lucent will exchange 14 million shares for Marlboro, Mass.-based Nexabit, a leading maker of high-speed switches designed to boost the capacity of congested networks so more information can travel faster over the Internet. See related story.
Shares in Lucent, the world's largest maker of phone equipment, rose 1 1/16 to 65 1/16. Rival Cisco (CSCO: news, msgs) gained 1 3/8 to 61 5/8.
Meanwhile, Apple (AAPL: news, msgs) shares were unchanged at 42 5/16, Dell (DELL: news, msgs) stock rose 7/16 to 38 9/16 and IBM (IBM: news, msgs) shares gained 2 3/16 to 124 3/4.
On the other side, SCM Microsystems (SCMM: news, msgs) continued to weaken. Shares of the company dropped 2 5/8 to 46 1/4 after warning it will post a second-quarter loss.
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