Wall Street Technology shares close lower on profit-taking in chip stocks

SAN FRANCISCO (AFX) - Prices of technology shares reversed earlier gains to close slightly lower, with losses concentrated in a semiconductor sector hit by profit-taking and earnings warnings, dealers said.	    But, with volumes remaining thin, there was little to conclude from the day's moves, they added.	    The Nasdaq composite ended down 10.19 points at 1,918.49 while the Nasdaq 100 closed 28.12 weaker at 1,676.90.	    The Philadelphia Semiconductor Indes closed down 23.62.	    In the wider market, the DJIA finished 182.75 higher at 9,687.53 while the S&P 500 index closed 12.86 higher at 1,152.69. 	     According to Art Hogan, chief market strategist with Jeffries & Co, there was not much to draw from the session's swing into negative territory. 	    "I would not read too much into today's falls," he said	    "Chip stocks have had such a terrific run over the last few sessions that they were due for some profit taking."	    His views were echoed by First Albany's chief investment officer Hugh Johnson, who added that investors were slowly regaining their appetite for risk.	    "Investors are definitely beginning to take more risks and this is an encouraging development, especially for the tech sector," he said.	    Particularly welcome, he said, was the fact that fewer investors were moving funds into the safe havens of government bonds.	    Even so, there were some big losers in today's session, notably chips, which saw some profit-taking after the sector's strong gains. 	    Intel closed down 1/2 at 28-5/16 while Advance Micro Devices lost 0.70 to 28.74. Micron ended down 1.96 at 46.87. 	    The sector took an additional hit after PMC Sierra issued a profit warning and announced job cuts. 	    PMC Sierra fell 1.67 to 32.26.	    Cisco was another major faller after comments from its chief executive re-ignited speculation that the company will issue another profit warning.	    In an interview with the UK's Financial Times, CEO John Chamber said that the U.S. downturn will continue for "at least three more quarters" and possibly longer.	    Cisco fell 13/16 to a fresh 52-week low of 17-7/8. 

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