By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Tech stocks put in a
disappointing market session Wednesday, with broad declines across
the sector following negative reaction to the earnings reports and
outlooks from Juniper Networks Inc. and Broadcom Corp.
Juniper (JNPR) shares fell 6.4% to $19.05 after the
networking-technology company reported better-than-expected
third-quarter results, but gave a fourth-quarter outlook
potentially below Wall Street analysts' estimates. Juniper said it
would cut 3% of its workforce amid slowing demand for telecom
equipment.
Broadcom (BRCM) shares were down almost 3% to close at $26.36
after the communications chipmaker also gave a quarterly forecast
that disappointed investors. Analyst Betsy Van Hees, of Wedbush
Securities, cut her rating on Broadcom to neutral, and took down
her price target on the stock to $27 a share from $33, saying the
company is facing a "much choppier than anticipated mobile market"
and 2014 will be a year of rebuilding.
Chip company Altera Corp. (ALTR) on Tuesday reported a 24% drop
in its third-quarter earnings and a weaker-than-expected
fourth-quarter outlook. Altera's shares fell 13.5% to end the day
at $32.30.
Cree Inc. (CREE) shares slumped by almost 17%, to close at
$61.77, after the LED-lighting technology company reported fiscal
first-quarter sales that missed expectations and gave a
second-quarter forecast that fell short of Wall Street analysts'
outlooks.
LinkedIn Corp. (LNKD) gave up 1.7% to fall to $240.83 as the
business social-networking company held event in San Francisco to
give details about its mobile strategy. One new mobile feature
gives users expanded profile information on people who email
them.
Other declines came from Yelp Inc. (YELP), Microsoft Corp.
(MSFT), Intel Corp. (INTC), Facebook Inc. (FB) and Amazon.com Inc.
(AMZN).
A few gainers managed to emerge, with Corning Inc. (GLW) up more
than 14%, to close at $17.52. Before the market opened, Corning
said it would buy out Samsung Electronics' stake in the company's
LCD panel joint venture, and that Samsung could take a 7.4% stake
in the maker of Gorilla Glass.
Apple Inc. (AAPL) shares rose almost 1%, to $524.96, a day after
the company unveiled the new iPad Air tablet, and gave updates on
its line of Mac computers.
Netflix Inc. (NFLX) shares rose 2.4% to $330.24. On Tuesday,
investor Carl Icahn said he sold almost 3 million shares of Netflix
stock, or more than half his stake in the video-streaming
company.
The Nasdaq Composite Index (RIXF) fell more than 22 points to
close at 3,907, while the Philadelphia Semiconductor Index (SOX)
was off by 3.4%.
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