By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Shares of Apple Inc. reversed
course, slipping in afternoon trades as the new iPhones went on
sale, as the tech sector slipped into negative territory.
Sliding shares of Microsoft Corp also weighed on the group, even
as shares of two tech companies roughly doubled on their first day
of trading following initial public offerings.
Apple (AAPL) shed 0.3% as the iPhone 5S and 5C went on sale with
reports of long lines at stores.
On the other hand, shares of some chip makers jumped on reports
based on at least one tear-down analysis showed that Apple used
their microprocessors in the new Apple products.
Broadcom Corp. (BRCM) were among the gainers, with its stock
rising nearly 1%.
Benchmark analyst Gary Mobley said in a note to clients that a
tear-down analysis conducted by iFixit of iPhone 5C and 5S models
showed that "most component suppliers featured in the iPhone 5 are
also included in the 5s/5c including Broadcom as the combo
connectivity chip supplier and supplier for the touch screen
controller IC."
"Broadcom's inclusion should, at least for the moment, alleviate
investor fears that Apple is developing its own connectivity
silicon or possibly using another merchant supplier," Mobley
wrote.
The iFixit report also mentioned iPhone components from Avago
Technologies, Skyworks Solutions and TriQuint Semiconductor. Avago
(AVGO) climbed 3.5%, while Skyworks (SWKS) firmed 1% and TriQuint
(TQNT) gained 2%.
Facebook Inc. (FB) also advanced 0.3% after Cowen analysts
upgraded the stock to outperform from market perform, and raised
their price target to $53 from $29.
Two tech firms added some fuel on the Nasdaq.
Shares of Rocket Fuel (FUEL) more that doubled as the automated
ad buying platform company began trading under the ticker symbol
"FUEL."
Rocket Fuel, which is based in Redwood City, Calif., and whose
technology is geared to helping marketers buy Web ads, sold 4
million shares at $29 a share, the high end of a revised range of
$27 to $29.
The stock was last up 91% at $55.43.
Shares in FireEye inc. (FEYE), a network security systems
company, soared more than 100% on its debut.
The Milpitas, Calif.-based firm sold 15.2 million shares at $20
a share, above its proposed range of $15 to $17. The stock was last
trading up 92% at $38.38.
The Nasdaq Composite Index (RIXF) traded down 0.2% to 3,782. The
benchmark was poised to end the week up 1.6%.
The Philadelphia Semiconductor Index (SOX) was also down a
fraction, as shares of Intel Corp.(INTC), Texas Instruments (TXN)
and Nvidia Corp. (NVDA) slipped.
A notable decliner was Microsoft Corp. (MSFT), shares of which
shed more than 2% a day after the company's meeting with
analysts.
Microsoft was the top decliner on the Dow Jones Industrial
Average (DJI) which was down 104 points.
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