By Benjamin Pimentel and Dan Gallagher, MarketWatch
SAN FRANCISCO (MarketWatch) -- Tech stocks fell mostly to the
red on Wednesday afternoon, led down by Hewlett-Packard as the tech
giant saw a downswing ahead of its scheduled earnings report on
news that two high-profile executives are getting re-assigned.
By late afternoon, H-P (HPQ) shares were down 2.3% to $25.25.
The stock is still up more than 75% since the first of the
year.
The tech giant will report results for its third fiscal quarter
after the closing bell, with sales and earnings expected to decline
for the period. The company may also confirm reports that Dave
Donatelli, who's been running the company's enterprise division,
and chief marketing officer Marty Homlish have been re-assigned in
some fashion.
The AllThingsD tech blog, which first reported the moves, said
it was not yet clear what the new jobs would be for the
executives.
The Nasdaq Composite Index (RIXF) was down 0.2% to 3,605 while
the Morgan Stanley High-Tech Index (MSH) was down 0.4% and the
Philadelphia Semiconductor Index (SOX) lost 0.5%.
Shares of Analog Devices Inc. (ADI) fell 2% after the chipmaker
reported a weaker-than-expected outlook -- helping lead down the
rest of the group. Intel (INTC) shares were down 1.6%.
Apple Inc. (AAPL) was up 0.4% at $503.11. UBS analyst Steven
Milunovich upped his price target to $560 from $500, citing
expected higher margins from the upcoming iPhone 5C and potential
gains from a deal with China Mobile.
"We have rejiggered conservative assumptions in our detailed
product model for the expected midrange iPhone 5C," he said in a
note. "Our price assumption increases from $379 to $399 and the
gross margin rises from 32% to 38% on a lower bill of materials,
making the 5C accretive to earnings."
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