By Rex Crum
Technology stocks struggled to eke out gains as trading
progressed Wednesday, overcoming an earnings and sales warning from
Nokia Corp. that earlier put a damper on much of the sector.
Before the market opened, the mobile-device and
wireless-equipment giant cited increased competition from high-end
handset rivals and a decline in the euro as factors behind the
forecast it revised lower for the second quarter.
Nokia (NOK) now expects device and services sales for the
quarter to be, at best, at the low end of its previously forecast
range of $8.2 billion to $8.9 billion.
Nokia fell 93 cents a share, or more than 9%, to $8.89 following
its warning.
Several other telecom and telecom-related stocks also
retreated.
RF Micro Devices Inc. (RFMD) and Skyworks Solutions Inc. (SWKS)
got caught up in the Nokia warning, as both count the company as
one of their top customers. RF Micro's shares fell 14 cents, or 3%,
to $4.61 as Skyworks gave up12 cents a share to trade at
$17.13.
Declines also came from National Semiconductor Corp. (NSM), down
40 cents, or almost 3%, to $14.60, and from Qualcomm Inc. (QCOM),
Dell Inc. (DELL), Hewlett-Packard Co. (HPQ) and Microsoft Corp.
(MSFT).
The Nasdaq Composite Index (RIXF) managed to at least
temporarily erase its losses, rising 4.5 points to 2,311, while the
Philadelphia Semiconductor Index (SOX) edged into positive
territory and the Morgan Stanley High Tech 35 Index (MSH) was in
the red.
A few gainers managed to emerge, with Apple Inc. (AAPL) rising
$6 a share, or more than 2%, to $265.72.
Among the reasons for Apple's rise were a belief that it is
taking some market share away from Nokia, and the company saying
that its customers had placed more than 600,000 pre-orders for the
new iPhone 4 on Tuesday, the first day that orders for the device
could be placed.
However, AT&T Inc. (T), which carries the iPhone in the
U.S., said it was suspending pre-orders of the new iPhone so that
it could fill its current slate of orders.
Gains also came from Cisco Systems Inc. (CSCO), SanDisk Corp.
(SNDK), IBM Corp. (IBM) and Intel Corp. (INTC).