By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Tech stocks rose Wednesday in an
effort to add to the prior day's advance, but declines from Adobe
Systems Inc. and Rackspace Hosting Inc. capped some of the sector's
gains.
Among tech-sector leaders, gains came from Apple Inc. (AAPL),
Hewlett-Packard Co. (HPQ) and online travel agent Priceline.com
Inc. (PCLN). The tech-heavy Nasdaq Composite Index (RIXF) was up by
8 points at 4,560 and the Philadelphia Semiconductor Index (SOX)
was also in positive territory.
However, Adobe (ADBE) shares fell 4.5% to $67.58 on reaction to
the software company's latest quarterly results and forecast.
Late Tuesday, Adobe reported fiscal third-quarter sales of $1.01
billion, which was shy of the $1.02 billion forecast by Wall Street
analysts. Adobe also said that for its fiscal fourth quarter, it
expects to earn between 26 cents and 32 cents a share, on revenue
in a range of $1.03 billion to $1.08 billion. Analysts had earlier
forecast Adobe to earn 29 cents a share on $1.05 billion in sales
for the quarter.
Rackspace (RAX) shares tumbled by more than 16% to $33. After
Tuesday's market close, the cloud-computing company said it had
stopped efforts to sell itself and would remain independent.
Rackspace also appointed company President Taylor Rhodes as its new
chief executive.
Microsoft Corp. (MSFT) was off by 20 cents a share. Late
Tuesday, the software giant said it would raise its quarterly by 3
cents a share, or 11%, to 31 cents a share. Microsoft also named
Kraft Foods Group Inc. Chief Financial Officer Teri List-Stoll and
Visa Inc. CEO Charles Scharf to its board of directors. It was
Microsoft's first dividend announcement and new director
appointments since former CEO Steve Ballmer left the company's
board in August.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires