By Rex Crum
Many leading technology stocks turned south Monday as the sector
gave up its early gains despite more positive reaction to both
Amazon.com Inc.'s strong earnings report and Microsoft Corp.'s
release of the Windows 7 operating system.
The Nasdaq Composite Index (RIXF) -- up by more than 27 points
early in the session -- turned around mid-afternoon, falling 7
points to 2,147. The Morgan Stanley High Tech 35 Index (MSH) was
also in the red while the Philadelphia Semiconductor Index (SOX)
managed to keep a toehold in positive territory.
The tech sector was caught up in a broad-market decline that was
spurred on by negative sentiment about certain aspects of the
banking industry.
Nearly every major tech stock was on the slide. Losses came from
Apple Inc. (AAPL), Dell Inc. (DELL), Cisco Systems Inc. (CSCO),
Intel Corp. (INTC), Hewlett-Packard Co. (HPQ) and IBM Corp.
(IBM).
Amazon (AMZN) still managed to buck the losing trend, as the
online retailer's shares surged another $4.62, or almost 4%, to
$123.15 as investors continued to react positively to the company's
third-quarter reports in which it reported a 69% increase in
earnings. Amazon also raised its forecasts for its crucial,
end-of-the-year holiday-season quarter.
Microsoft (MSFT) shares also managed to gain ground, rising 83
cents to $28.88 after industry reports of strong sales of the new
Windows 7 operating system, which was released on Oct. 22.
Marvell Technology Group Ltd. (MRVL) shares rose 50 cents, or
3.4%, to $15.09 after the maker of storage and communications
semiconductors raised its third-quarter revenue forecast. Marvell
now estimates it will report sales of $760 million to $775 million,
up from its earlier estimate of $680 million to $730 million in
revenue.