By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Tech stocks slipped into the red
in early trading Tuesday, with Google Inc. pressuring the sector
ahead of its fourth-quarter earnings report, due after the closing
bell.
The Nasdaq Composite Index (RIXF) gave up 0.3% to slip to 3,125,
while the Philadelphia Semiconductor Index (SOX) fell 0.6% and the
Morgan Stanley High Tech 35 Index (MSH) fell by 0.4%.
An early lift from Apple (AAPL) helped the group, but the stock
quickly gave back its gains. Verizon (VZ) said it activated 6.2
million iPhones during the fourth quarter of 2012, with almost half
of the activations being Apple's iPhone 5.
Brian Marshall, an analyst with ISI Group, said Verizon's report
is "a solid number supportive of our estimate of 48 million total
iPhones," sold in the December quarter.
But Steven Milunovich of UBS scaled back his price target on
Apple to $650 from $700. In his note -- issued prior to Verizon's
report -- the analyst cut back his estimated average selling price,
or ASP, for the iPhone, citing a survey showing customers opting
for lower-memory models of the device.
Verizon (VZ) shares moved up by 0.7% to $42.85. The company
reported a loss for the fourth quarter -- hurt in part by high
subsidies for the iPhone 5. But the company projected stronger
margins for the year, and said on a conference call that it was
considering buying back shares.
Google Inc. (GOOG) shares were off by about 1%, at $697.83 in
advance of the Internet giant's quarterly results, set for after
the close of trading Tuesday. Analysts expect Google to show gains
from more of its ad business.
Research In Motion (RIMM) shares climbed more than 10%, to
$17.44. RIM Chief Executive Thorsten Heins reiterated to a German
newspaper that the company is continuing with a strategic review of
all of its business operations -- which could include licensing its
software to other handset makers or selling its own handset
business.
International Business Machines Corp. (IBM) shares rose
fractionally to $195.15, while Advanced Micro Devices Inc. (AMD)
was down 0.8% and Texas Instruments Inc. (TXN) shed 0.7%. All three
companies are scheduled to release quarterly reports after
Tuesday's market close.
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