By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- A technology sector rally fizzled
Monday as shares of Apple Inc. sank on news that China Telecom was
cutting back subsidies for the iPhone.
Tech stocks began the day by joining a market rally on news that
former Treasury Secretary Lawrence Summers had withdrawn his name
from consideration for the top post at the Federal Reserve.
But the sector was later weighed down by Apple Inc. (AAPL),
which shed 3.2% to close at $450.12. The Wall Street Journal
reported that China Telecom Corp. was cutting back on subsidies of
the iPhone that suggests users will have to pay more upfront for
the iPhone 5S than those who bought the iPhone 5 last year.
The Nasdaq Composite Index (RIXF) was off 0.1% to close at
3,718. The Philadelphia Semiconductor Index (SOX) rose 0.4%, but
the Morgan Stanley High Tech 35 Index (MSH) fell 0.2%.
The Dow Jones Industrial Average (DJI) gained 119 points on news
that Summers will not be the next Federal Reserve head.
Gains came from Oracle Corp. (ORCL), which was up 1.6% to close
at $32.97, and Yahoo Inc. (YHOO), which was up 1.2% to close at
$29.62.
Shares of Facebook Inc. (FB) slipped 4.1% to close at $42.51,
Groupon Inc. (GRPN) shed 3.8% to close at $11.24, while
Hewlett-Packard Co. (HPQ) gave up 1.5% to close at $21.74.
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