By Rex Crum
Technology stocks tried to put the brakes on broad losses
Wednesday after an earnings and sales warning from Nokia Corp. put
a damper on much of the sector.
Before the bell, the mobile-device and wireless-equipment giant
cited increased competition from high-end handset rivals and a
decline in the euro as factors behind the forecast it revised lower
for the second quarter.
Nokia (NOK) now expects device and services sales for the
quarter to be, at best, at the low end of its previously forecast
range of $8.2 billion to $8.9 billion.
U.S.-listed shares of Nokia fell 86 cents, or nearly 9%, to
$8.96 following its warning.
Several other telecom and telecom-related stocks also
retreated.
RF Micro Devices Inc. (RFMD) and Skyworks Solutions Inc. (SWKS)
got caught up in the Nokia warning, as both count the company as
one of their top customers. RF Micro's shares fell 5 cents to $4.71
as Skyworks moved down 44 cents to $16.80.
Declines also came from National Semiconductor Corp. (NSM), down
64 cents, or more than 4%, to $14.37, and from Qualcomm Inc.
(QCOM), Intel Corp. (INTC), Dell Inc. (DELL), Hewlett-Packard Co.
(HPQ) and Microsoft Corp. (MSFT).
The Nasdaq Composite Index (RIXF) fell nearly 12 points to
2,294, while the Philadelphia Semiconductor Index (SOX) and the
Morgan Stanley High Tech 35 Index (MSH) were each down more than
1%.
A few gainers managed to emerge.
Shares of Apple Inc. (AAPL) rose $3.46 to $263.14 on the belief
that it is taking some market share away from Nokia, while Cisco
Systems Inc. (CSCO) and SanDisk Corp. (SNDK) also gained
ground.