By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Tech stocks put in a mixed
performance Tuesday as investors reacted to Netflix Inc.'s
quarterly results and Cisco Systems Inc.'s deal to buy
network-security software company Sourcefire Inc. for $2.7
billion.
Anticipation also began to rise for Apple Inc.'s (AAPL) earnings
report, due after the market close.
Netflix (NFLX) was down by 1.5%, at $257.93, after
new-subscriber numbers during its second quarter failed to meet
expectations. Netflix said it added 630,000 new subscribers in the
U.S. during the quarter, but Wall Street analysts had expected as
many as 800,000 new additions due to the launch of programming such
as a new season of "Arrested Development."
The new-subscriber numbers took some of the shine off the rest
of Netflix's results, as the company reported earnings that more
than quadrupled from the year-ago period.
Cisco (CSCO) shares slipped 11 cents to $25.62 after the company
said it would acquire Sourcefire(FIRE) for $76 a share. Sourcefire
shares rose 28%, to $75.64, after the deal was announced.
Apple (AAPL) was off by $2.50 a share, at $423.64, ahead of the
company's fiscal third-quarter results, set for after the close of
trading. Analysts are forecasting Apple's sales to be relatively
flat compared with the year-ago quarter due to more competition in
the smartphone market.
Printing-technology company Lexmark International Inc. (LXK)
shares jumped almost 10% to $37.91. Before the market opened,
Lexmark reported second-quarter earnings and sales that surpassed
both the company's and Wall Street analysts' consensus
estimates.
Texas Instruments Inc. (TXN) was also having a good day, and was
up by 5% at $39.29 a share. On Tuesday, the chipmaker reported a
gain in second-quarter earnings and forecast better-than-expected
results for its third quarter. TI attributed its performance to
strength in areas such as the industrial and automotive
markets.
Yahoo Inc. (YHOO) slipped by almost 1% to $27.64. Needham &
Co. analyst Laura Martin cut her rating on Yahoo to hold from buy,
citing "higher risks" in the wake of Third Point selling back
nearly all of its Yahoo shares and its three directors leaving the
Yahoo board.
The Nasdaq Composite Index (RIXF) fell 7 points to 3,593. The
Philadelphia Semiconductor Index (SOX) and the Morgan Stanley High
Tech 35 Index (MSH) both edged into positive territory.
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