Tech Stocks Mixed as Rate Fears Revive

Bank technology stocks were mixed last week amid new government figures that showed the economy grew faster than expected in the second quarter.

The robust growth reported by the Commerce Department - a 4.8% annual rate - was taken as a sign that the Federal Reserve might boost short-term interest rates as early as its meeting later this month.

The Dow Jones industrial average sank on the news, closing down 106.53 points for the week, heavily influenced by the dramatic drop in the bond market. Yields for the benchmark 30-year Treasury note leaped 17 basis points, to 7.11%, from the week-earlier close of 6.94%.

The Nasdaq composite, which is heavy in technology stocks, held steady, off only 1.56 points for the week. Goldman Sachs & Co.'s composite of U.S.- traded technology companies fell 1.41 points for the week.

"I think we're still getting a mixed bag of economic news," said Beth Marino, an economic analyst at Huntington Bancshares. "Investors are a little wary as to what the next Fed move will be and when."

The quarterly growth figure, along with other government reports, pointed to solid economic momentum. Housing starts in July rose 7.9%, the biggest monthly increase since February. U.S. factory orders in July surged 1.8%, led by record demands for electronics and industrial machinery. The increase in factory orders reported Friday was twice the number Wall Street had expected.

But Ms. Marino pointed to some other, weaker economic signals. Existing home sales declined slightly, and increases in personal income and consumer spending in July were less than anticipated.

In news affecting banks, Jeffrey H. Fox was named president of Alltel Information Services Inc., the outsourcing and technology firm.

Mr. Fox, an investment banker for the last 12 years, joined the Little Rock company last February as senior vice president of business development.

Officials at Alltel Corp., its corporate parent, said Mr. Fox is an expert in corporate finance and merger-related consulting. It was the third major executive change at the company since May, when chairman John Steuri retired. He was recently replaced by William L. Cravens.

"These promotions were made in recognition of the roles that both Mr. Cravens and Mr. Fox have filled over the past several months," said Shawne Leach, vice president of investor relations. Both men "stepped up and assumed additional responsibilities," she said.

Alltel shares were down $0.625 from the previous week's close of $28.875.

In other news, shares of Edify Corp. rose $1 for the week to close at $22.75. The Santa Clara, Calif.-based developer of software for the Internet said it has recently formed business partnerships with a number of consulting and systems integration firms. Among them are Alltel, American Management Systems Inc., Automatic Data Processing Inc., Electronic Data Systems Corp., M&I Data Services, and Visa Interactive, a unit of Visa International Inc.

In May, Edify launched its Electronic Banking System, which provides on- line banking services over the World Wide Web. The system has won a major endorsement from Visa Interactive, which promotes it to banks using its services.

Edify officials said more than 150 banks use its software, including First Union Corp. and Chase Manhattan Corp.

Elsewhere, shares of Sungard Data Systems Inc. were up $1 for the week, closing at $42.50.

The Wayne, Pa.-based supplier of disaster recovery and securities processing services signed an outsourcing deal with First Union Corp. earlier last week.

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