(Updates to late afternoon)
* Nasdaq gains for third day
* Dow hurt by Coca-Cola's fall as corn futures jump
* Verizon and AT&T fall after brokerage downgrade
By Walker Simon
NEW YORK, June 16 (Reuters) - U.S. technology stocks rose
on Monday for the third straight session, while blue-chip
stocks declined slightly, as rising corn prices hurt beverage
makers' shares and broker downgrades of leading telephone
companies spurred some selling in that sector.
BlackBerry maker Research in Motion <RIMM.OQ> rose more
than 6 percent after investors said that Nokia's new phone
models would not pose a threat to RIM's dominance of the
business market. It was among the Nasdaq's top-weighted
gainers.
Weighing on blue chips were downgrades of Dow components
Verizon Communications<VZ.N>, which fell 2.8 percent to
$36.26, and AT&T <T.N>, which fell 1.5 percent to $36.14. UBS
cut its ratings on the stocks to "neutral" from "buy," citing
pressure from mobile competitors and the weak economy.
Fears that floods in the Midwest would drive up prices of
soda ingredient corn syrup hit Pepsico Inc <PEP.N>, which fell
2.4 percent to $65.93, and Coca-Cola <KO.N>, which fell 2
percent to $54.34.
Corn prices have risen for eight straight days as floods
cut back anticipated corn harvests in the Midwest. U.S. corn
futures for July 2009 delivery <CN9> rose above $8 a bushel
for the first time.
Nasdaq's gains were supported by the perception that big
technology companies that cater to corporate customers have
less exposure to the swings in consumer spending, said Mike
McCarty, options strategist at Meridian Equity Partners, in
New York.
The Dow Jones industrial average <> was down 16.37
points, or 0.13 percent, at 12,290.98. The Standard & Poor's
500 Index <.SPX> was up 2.05 points, or 0.13 percent, at
1,361.74. The Nasdaq Composite Index <> was up 19.75
points, or 0.80 percent, at 2,474.25.
Further supporting technology shares were perceptions that
"they were beaten up ... so there is a little bottom fishing,"
said Todd Leone, head of listed trading at Cowen & Co. in New
York.
The semiconductor index<.SOXX>, up 1.7 percent, was
attracting particular interest since it was approaching its
200-moving day high, Leone added. Shares of Research in Motion
gained 6.1 percent to $141.11 on the Nasdaq.
Declines in the broad market were offset by a rebound of 6
percent in the shares of investment bank Lehman Brothers
Holdings Inc after its CEO Richard Fuld took responsibility
for the company's first-ever quarterly loss, which reassured
investors about the bank's stability. The quarterly loss of
$2.8 billion matched Lehman's forecast. For details, see
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Lehman shares rose 5.6 percent to $27.23.
Lehman's jump helped U.S. bank stocks, with the KBW bank
index <.BKX> up 2 percent. Earlier in the day, Lehman's stock
climbed as high as $28.21, a gain of 9.3 percent from its
close on Friday on the New York Stock Exchange.
Another positive factor was the slight decline in U.S. oil
futures prices after they hit a record high near $140 a barrel
earlier in the day. On the New York Mercantile Exchange, U.S.
crude oil for July delivery <CLc1> settled at $134.61 a
barrel, down 25 cents.
(Editing by Jan Paschal)
