Sector Watch: Computer, Drug and Tobacco Stocks Gain

Despite the market's ability to turn many of its early-morning losses into gains, few sectors were moving with conviction to the upside or downside.

Investors were finding some defensives, as well as computer hardware makers and chipmakers, appealing. Helped by Dell (DELL Quote) and other computer hardware makers, the Philadelphia Stock Exchange Computer Box Maker Index was rising 0.7%. The Philadelphia Stock Exchange Semiconductor Index was adding 1.7%.

All was not happy in tech land, however. Sun Microsystems(SUNW Quote) already hit a 52-week low of $14.75 on news that one of its suppliers JNI(JNIC Quote) was cutting its first-quarter earnings estimates -- in part due to weakness in its major customer's business. Sun lately had bounced off its lows, but was still off 6% to $14.91. JNI had also visited 52-week lows, but was now down 13% to $7.94.

To be sure, investors weren't completely convinced tech was safe again, and those views were giving a lift to pharmaceuticals and tobacco. No matter how hard the times, people still need drugs and they tend to buy tobacco. The American Stock Exchange Pharmaceutical Index was edging up 0.6%. The American Stock Exchange Tobacco Index was 1.4% higher.

Earlier today, drug maker Pfizer(PFE Quote) said it would form an independent company with software behemoth Microsoft(MSFT Quote) and PC maker IBM(IBM Quote) to develop software and services for doctors' practices and medical information. Pfizer, Microsoft and IBM were all higher in recent trading.

Energy stocks continued their slide that started at the beginning of the week, with the American Stock Exchange Natural Gas Index down 2% and the Philadelphia Stock Exchange Oil Service Index off 2.9%.