By Benjamin Pimentel
Tech stocks fell Tuesday morning, following Monday's rally, as shares of Brocade Communications plunged sharply after issuing a weaker-than-expected forecast.
Shares of Brocade (BRCD) sank more than 6%, as the Nasdaq Composite Index (RIXF) lost 0.9% to 2,156.
In a research note, BMO Capital analyst Keith Bachman cited Brocade's forecast for a sequential revenue gain of 4% to 5% "which is below normal seasonal patterns, and comments made at analyst day."
The tech sector got a boost from Analog Devices Inc. (ADI) shares of which gained more than 5% after the chip maker reported results that exceed Wall Street's expectations.
But those gains weren't enough to prevent the sector from sliding, as the Morgan Stanley High Tech 35 Index (MSH) lost 0.7% and the Philadelphia Semiconductor Index (SOX) fell 0.4%.
Hewlett-Packard (HPQ) lost 1.7%. Late Monday, the Silicon Valley giant reported a higher quarterly profit, despite a dip in sales.
Other major tech players were in negative territory, including Oracle Corp. (ORCL), Advanced Micro Devices (AMD) and Apple Inc. (AAPL).