THE REAL MOST ACTIVE Nasdaq Lower As Chinese Internets, Chips Fall.(B)

Byline: NANCY GONDO

Nasdaq stocks closed lower Tuesday, dragged down by a profit warning from networking gear maker Sun Microsystems and weak economic data. The composite index gave up 2.1%, and the tech-heavy Nasdaq 100 fell 2.4%, both on slightly higher volume.

Internet content providers were the biggest losers among IBD's 197 industry groups, with a 3.9% drop. NetEase.com lost 3.53 to 55.86 on double normal trade. It's the Chinese Web stock's fourth down day of the past five sessions. Fellow Internet firm Sina showed similar stock action, giving up 2.94, or 7.6%, to 35.71. Both stocks are still holding up above their 50-day moving lines.

Chipmakers also registered some of the day's biggest losses, as the Electronic-Semiconductor Manufacturing group fell 2.7%. Silicon Laboratories sagged 4.14 to 44.92 on nearly triple normal volume. Sales growth is expected to slow from 68% in the second quarter to 44% and 31% in the third and fourth quarters, respectively.

Among other chipmakers, Standard Microsystems lost 0.94 to 26.98 on high turnover after five straight up days. OmniVision Technologies slid 0.57 to 42.21, extending its downtrend for ...