Intel Corp. shed $1.18 at $29.14. Intel agreed to buy three privately held companies that make components for optical networking equipment as the No.1 chipmaker continues its push into new markets beyond its bread-and-butter microprocessor business.
The Philadelphia semiconductor index lost 2.47 percent amid losses by other sectoral firms including Applied Materials. Orders for gear from North American-based chip-equipment companies fell 23 percent in March from the previous month amid a continued slump in the semiconductor industry, a trade group said late on Monday.
Telephone and cable television giant AT&T Corp. nosed up 14 cents to $22.12, although the Dow component posted a loss on stiff competition and weak prices, and warned its second-quarter earnings will be below current expectations.
Another Dow company, DuPont Co., the No. 1 U.S. chemical company, said earnings dropped sharply because of a slowing economy, high raw material costs, and poor results from its drugs unit. Its shares however rose 67 cents at $44.80.
Struggling telecommunications equipment giant Lucent Technologies Inc. jumped $1.05 to $10.25. The company said its results dropped due to a slowdown in customer spending and the company's restructuring. Brokerage Salomon Smith Barney, however, raised its investment rating on the company.