Tech Stocks Battling Materials Shares for Market Lead

Technology stocks recorded moderate gains today, with shares of tech companies in the S&P 500 rising about 0.5% in late trade.

In company news, Fitbit (FIT) was sharply higher shortly before Tuesday’s closing bell after the high-tech exercise equipment company late last week moved to shelve one of its patent-infringement lawsuits against AliphCom and its Jawbone fitness band activity tracker.

With slightly less than two weeks before the companies are next scheduled to appear at a Jan. 5 hearing in federal court on AliphCom’s bid to have the case dismissed, Fitbit on Friday withdrew a complaint it filed against its rival with the U.S. International Trade Commission, explaining it appears that AliphCom is failing financially and has already quit selling its devices in the United States.

“Jawbone appears to be a different company,” Fitbit said in an ITC filing obtained by the Wall Street Journal. “SEC filings of one of its biggest investors now value Jawbone shares as worth nothing, as well as indicate that Jawbone has filed for bankruptcy or is in default.” An AliphCom spokesman told the newspaper Friday it has no plans to file for bankruptcy protection.

By BDL Contributor