By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Technology stocks slid into the
red as falling semiconductor shares weighed the sector down,
offsetting gains in shares of Amazon.com Inc., which got a lift
from its rollout of a new tablet.
The chip retreat was led by Advanced Micro Devices Inc. (AMD),
which fell 5.2% to close at $6.15, while LSI Corp. (LSI) lost 5.6%
to close at $5.44 and SanDisk Corp. (SNDK) declined 3.3% to close
at $41.78.
In a note, J.P. Morgan analyst Christopher Danely wrote that
"most investors we met with last week indicated they are waiting
for another round of estimate cuts in October and a resolution in
the European financial crisis before buying semiconductor
stocks."
However, Danely also said that in his view, "semiconductor
stocks have bottomed and that investors should buy before the
likely 1Q12 recovery."
That view apparently was not widely shared by investors
Wednesday, as the Philadelphia Semiconductor Index (SOX) slid 2.9%.
The index has lost more than 13% since Jan. 1.
But the tech sector got a lift from Amazon.com (AMZN), which was
trading up 2.5% to close at $229.71 as the company unveiled its new
anticipated tablet.
The Nasdaq Composite Index (RIXF) slipped 2.2% to close at
2,492.
Jabil Circuit Inc. (JBL) stock rose 8.4% to close at $18.84
after the contract manufacturer reported upbeat earnings and a
stronger-than-expected outlook.
Shares of Accenture PLC (ACN) added a fraction to close at
$53.83 after the IT services and consulting firm reported a jump in
profit.
IT services and distribution firm Synnex Corp. (SNX) also saw
its stock rise 9.4% to close at $27.26 after the company posted
strong quarterly results.
Among the notable decliners was Juniper Networks Inc. (JNPR),
which slipped 5.4% to close at $18.85.
In a note, FBN Securities analyst Shelby Seyrafi initiated
coverage of the stock with a sector-perform rating, saying Juniper
"has many new product cycles beginning, but service-provider
spending is slowing while Cisco is becoming more aggressive."
Seyrafi also initiated coverage of Cisco Systems Inc. (CSCO)
with an outperform rating. Cisco shares fell 1.4% to close at
$15.84.