By Rex Crum

Most leading technology stocks closed with gains Wednesday, as the sector came back from an early decline that had been led by investors initially reacting negatively to Hewlett-Packard Co.'s drop in quarterly earnings.

The Nasdaq Composite Index (RIXF) rose more than 13 points to 1,969, while the Morgan Stanley High Tech 35 Index (MSH) and the Philadelphia Semiconductor Index (SOX) both closed in positive territory.

Gains came from IBM Corp. (IBM), Texas Instruments Inc. (TXN), Intel Corp. (INTC), Apple Inc. (AAPL), EMC Corp. and Cisco Systems Inc. (CSCO).

Storage-technology company NetApp Inc. rose 4 cents to $23.89. Analysts at Bank of America and Avian Securities raised their ratings on NetApp ahead of the company's quarterly results, due after the Wednesday close.

H-P (HPQ) remained one of the few sector leaders to lose ground, giving up 13 cents a share to close at $43.83.

Late Tuesday, the company reported third-quarter earnings declined by 19% from the same period during fiscal 2008.

However, H-P's results still topped the estimates of analysts, many of whom said the blue chip's profit margins remain strong and were impressed by its fourth-quarter earnings outlook, which exceeded analysts' consensus forecasts.