Financial stocks took a breather Tuesday as investors shifted their attention back to technology shares.
Thrifts slipped from Monday's 52-week highs after Paine Webber Group downgraded Golden West Financial Corp. and Washington Mutual Inc. to "neutral" from "attractive." Golden West fell $1.375, or 2.43%, to close at $55.25 and Washington Mutual fell $1.875, or 4.08%, to $44.0625. MGIC Investment Corp., also downgraded by Paine Webber, fell $3.8215, or 5.33%, to $67.6875. The Nasdaq rose 5.58% as several technology companies reported better-than-expected earnings. The rise in tech stocks, coupled with downgradings of the stocks of thrift companies that had reached their price targets, resulted in mixed trading after a two-day surge for financial-companies.