By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Tech stocks put in a slightly
negative 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.
Apple Inc. (AAPL) ended the day in the red, but shares jumped
more than 5% in after-hours trade after the company reported
third-quarter results that beat Wall Street's estimates thanks to
stronger-than-expected iPhone sales.
Netflix (NFLX) closed with a loss of 4.5%, at $250.26 a share,
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 16 cents to close at $25.56 after
the company said it would acquire Sourcefire(FIRE) for $76 a share.
Sourcefire shares rose almost 28%, to close at $75.49, after the
deal was announced.
Apple (AAPL) shares were up 5% in after-hours trade on Tuesday.
Shares had ended the day down 1.7% at $418.99 ahead of the
company's third-quarter earnings release, which came after market
close. For the period ended June 29, Apple reported net income of
$6.9 billion, or $7.47 per share, compared with net income of $8.8
billion, or $9.32 per share, for the same period last year. Follow
Apple's conference call on our live blog here.
Printing-technology company Lexmark International Inc. (LXK)
shares jumped more than 5% to close at $36.43. 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) also had a good day, rising more
than 4% to close at $38.93 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 2% to $27.36. 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 21 points to end the day
at 3,579. The Philadelphia Semiconductor Index (SOX) and the Morgan
Stanley High Tech 35 Index (MSH) also closed with small losses.
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