NEW YORK -- High-tech stocks tumbled yesterday in heavy trading, and the broader market weakened as well despite clear signs that the Federal Reserve eased monetary policy over the weekend.
The Dow Jones industrial average slid 15.84, to 2,939.36, with declining issues leading advancing ones by a 3-2 ratio. New York Stock Exchange volume dipped to 161.6 million from 206.9 million Friday.
A big part of the high-tech decline was attributed to Thomas Kurlak and Daniel Mandresh, Merrill Lynch analysts.
Mr. Kurlak, who for three years has recommended Intel, the semiconductor producer, downgraded the stock to "neutral." Mr. Mandresh downgraded IBM from "strong buy" to "above average." Traders reasoned that what held for these two market leaders also held for other high-flying technology stocks.
IBM slipped 2 1/8 , to 129 1/8 , while Intel topped the NASDAQ list of the 10-most-active over-the-counter stocks, sinking 5 3/4 , or 11 percent, to 45 3/4 . Microsoft, No. 2 on the NASDAQ active list, slumped 3 1/4 , to 99 1/4 . Apple lost 1 1/2 , to 63 1/2 while Hewlett rose 3/8 , to 49 1/4 .
Over-the-counter stocks, as measured by the NASDAQ composite index, sank 1.7 percent -- equivalent to nearly 50 Dow points -- because of a big selloff in high-tech stocks.
CBS fell 12 3/8 , or 6.8 percent, to 169 1/2 after reports that the Federal Communications Commission is not expected to relax network curbs on the sale of television reruns.