Wall Street: Tuesday open

TECHNOLOGY stocks edged up after robust earnings from chip maker

The Nasdaq Composite Index added 9 points, or 0.49% to 1,934 while the Dow Jones industrials lost 23 points, or 0.24% to 9,754.

Texas Instruments, the top supplier of microchips for cellular phones, jumped $1.68, or 6.5% to $27.35 after reporting a surprisingly strong profits. The company also forecast earnings and revenue for the fourth quarter well above expectations.

AT&T skidded $1.24, or 5.9% to $19.83. The Dow member said some past expenses had been understated by $125 million because two workers had circumvented internal accounting controls, a development that analysts said is likely to overshadow improved earnings.

SBC, the No. 2 US local telephone company, fell 92 cents, or 4.1% to $21.48 and added more pressure to the Dow. The company posted lower third-quarter earnings and revenues as competition from wireless telephones and e-mail reduced demand for its traditional phone service.

HCA, the largest US hospital chain, dropped $1.89, or 4.9% to $36.46. The company posted a higher quarterly profit but said earnings for 2003 and 2004 would be below analysts' forecasts largely due to reduced Medicare reimbursements.

J2 Global Communications, which provides messaging and communications services, tumbled $8.62, or 19.9% to $35.19. The company said third-quarter profit rose 84% but fourth-quarter earnings will be lower than Wall Street estimates.

This week is the busiest for third-quarter earnings. Corporate earnings are landing in line with or better than expectations, but major market gauges have had a mixed performance over the past few sessions.

Investors are concerned that much of the positive earnings news has already been priced into the market. Stocks have surged since mid-March as investors anticipated a rebound in the economy and corporate profits.