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From Briefing.com: 4:20 pm : Stocks tumbled Tuesday as a market increasingly sensitive to rising interest rates used the latest uptick in bond yields as an excuse to take some more money off the table. The S&P 500 paced the way lower among the majors as all 10 of its sectors closed sharply lower. Only four of the 147 S&P industry groups finished higher.

China's inflation rising at the fastest pace in more than two years exacerbated concerns about global tightening and was the initial spark behind the exodus out of Treasuries.

More unwinding of mortgage hedges and concerns that upcoming inflation data (e.g. PPI, CPI) may validate last week's sell-off in Treasuries also contributed to the rise in yields. In turn, that stirred concerns for equity investors that bonds will soon be seen as a more attractive alternative to stocks and that a continued rise in borrowing costs will slow down M&A activity.

The jump in bond yields undercut income-oriented sectors like Telecom (-1.8%) and Utilities (-1.5%) which were the day's biggest laggards. The rate-sensitive Financial sector (-1.1%), which held up rather well throughout most of the session, also got hit as the yield on the benchmark 10-year note closed at 5.24%, its highest level since May 2002.

Lehman Brothers (LEH 76.12 +0.44) kicked off the earnings season for Wall Street brokers on a positive note, handily topping expectations with record net revenues in all business segments. However, today's only notable earnings report was by no means enough to get overall buying efforts back on track.

The inability of the transportation stocks to take advantage of a nearly 1.0% decline in oil prices was also noteworthy. Railroads turning in one of the day's worst performances contributed to the 1.1% decline in the Industrials sector. The absence of leadership in Technology (-0.8%) also weighed on sentiment.

Semiconductors were in focus and actually turned positive intraday as Intel (INTC 22.20 +0.27) shareholders applauded a Bloomberg.com report that the Dow component plans to slash chip prices for its high-end processors by 50% as it works to regain market share lost to rival Advanced Micro Devices (AMD 13.80 -0.11).

An Intel spokesman wouldn't verify the accuracy of the article, citing company policy on pricing.

Separately, Texas Instruments (TXN 35.07 -0.72) merely narrowing its Q2 outlook last night failed to impress investors who are growing ever more skeptical about the Tech sector's potential to be a significant contributor this year to aggregate earnings growth on the S&P 500.

It is worth noting that the major averages briefly moved into positive territory a little after 2:00 ET when bonds showed some semblance of stabilizing after former Fed Chairman Greenspan said that he's not worried about China selling U.S. treasuries. However, the recovery in Treasuries was short lived and the higher rates climbed, the further stocks fell. DJ30 -129.95 NASDAQ -22.38 SP500 -16.12 NASDAQ Dec/Adv/Vol 2268/764/2.08 bln NYSE Dec/Adv/Vol 2870/444/1.55 bln

3:30 pm : The indices are spiking to afternoon lows going into the close as the strong inverse correlation between rising interest rates and falling stocks continues to hold true. Further underscoring the market's increasingly pessimistic tone today are gains of 7.8% and 4.1% on the VIX (CBOE Volatility Index) and VXN (CBOE Nasdaq Volatility Index).

Known as the "investor fear gauges," both indexes spiking higher suggest investors are actively buying put options in anticipation of further downside in stocks. Market internals also hold a decidedly bearish bias. As reflected in the A/D line, decliners on the NYSE hold a more than 5-to-1 edge over advancers while those on the Nasdaq hold a 3-to-1 margin.DJ30 -86.63 NASDAQ -17.41 SP500 -11.44 NASDAQ Dec/Adv/Vol 2272/761/1.70 bln NYSE Dec/Adv/Vol 2763/536/1.18 bln

5:57PM California Micro form 10-K posts slightly better financial results than previously reported Q4 and FY07 (CAMD) 4.68 -0.07 : Co released its Form 10-K, posting slightly better financial results than previously reported for Q4 and entire year of FY07, which ended March 31, 2007. Co previously reported Q4 Non-GAAP EPS of $0.02 on May 3. Co now notes that non-GAAP EPS is actually $0.03. The co also revised gross margin upward by ~$215,000. March quarter revenue remained unchanged at $15.5 mln compared to $17.4 mln a year ago.

4:53PM MathStar announces pricing of public offering of common stock at $1.60 (MATH) 1.85 -0.20 : Co announced the pricing of an underwritten public offering of 21,875,000 shares of newly issued common stock at $1.60 per share before underwriting discounts and commissions. MATH has granted to the underwriters a 30-day option to purchase up to an additional 3,125,000 shares of common stock to cover any over-allotments.

3:59PM Market View: Recent recovery attempt derailed by rising Yields (TECHX) : The stock market spent the previous two days in a recovery mode but this modest upswing was derailed by another jump in interest rates with the 10-Yr Yield setting a new five year high (30-Yr Yield at three year high). It is not the absolute level of interest rates as they remain low from a historical standpoint but rather the penetration of the 5.00% level in the 10-yr, which coincided with the break above a multi-year trendline signaling a potential change in trend that has the market on edge and currently in inverse lockstep with yields (click for chart). Sector pressure was virtually across the board (Tobacco +0.15%) with Steel -3%, Home Construction -2.5%, Railroad -2.2%, Coal -2.1%, Airline -2%, Trucking -1.9%, REITs -1.9%, Water (PHO -1.9%) and Broker/Dealer -1.5% pacing the way.

10:28AM Plexus announces COO, Paul Ehlers passes away (PLXS) 21.85 +0.07 : Co announces that Paul Ehlers, passed away on June 10 after a battle with cancer. Mr. Ehlers, who has been on medical leave since January 2007, served most recently as Executive Vice President and Chief Operating Officer of Plexus.

8:31AM Diodes raises Q2 low end of rev growth guidance range (DIOD) 35.98 : Co sees Q2 sequential revenue growth of 3-5% (roughly $94.8-96.6 mln vs $95.1 mln consensus)up from prior guidance of 2-5%.

8:00AM Broadcom to acquire Global Locate (BRCM) 30.74 +0.17 : Co announces that it has signed a definitive agreement to acquire Global Locate, Inc., a privately-held, fabless provider of industry-leading global positioning system and assisted G.P.S semiconductor products and software. G.P.S is expected to join Bluetooth and similar wireless technologies as a pervasive feature in next generation mobile devices. Global Locate's semiconductor solutions are used in mobile phones from leading cellular handset makers and incorporated into products from TomTom NV, the largest personal navigation device vendor in the world. The co expects the demand for G.P.S devices to increase dramatically as the deployment of G.P.S in mobile phones increases. The co expects to pay approx $146 mln net in cash at closing in exchange for all outstanding shares of capital stock and other rights of Global Locate. A portion of the consideration payable to the stockholders of Global Locate will be placed into escrow pursuant to the terms of the acquisition agreement. Additional consideration of up to $80 mln in cash will be reserved for future payment to the former holders of Global Locate capital stock and other rights upon satisfaction of certain performance goals. The co may record a one-time charge for purchased in-process research and development expenses when the closing occurs. The amount of that charge, if any, has not yet been determined.

7:31AM White Elec Designs gets $3 mln medical market contract (WEDC) 5.84 : Co announced that it has received a contract worth approximately $3.0 mln for the design and manufacture of a test strip for a blood monitoring application.

09:20 am Apple (AAPL)

While many people have come to think of Apple (AAPL) as a hardware company, at its core it's a software company that encapsulates its core competencies in world-class, truly innovative, and highly intuitive hardware designs. It's hard to think of another company in recent years that has had a greater impact on how people interact and consume entertainment.

With the excitement around the iPhone reaching a fevered pitch ahead of the launch, Apple focused on its roots at its recent Worldwide Development Conference (WWDC) on Monday. Apple's Leopard, a next-generation Mac OS X operating system (version 10.5), took center stage.

The bells and whistles in the latest version are raising expectations that Leopard could sustain the upward momentum the Mac has been enjoying, possibly sparking a replacement cycle amongst the existing Mac user base and more importantly bringing new users into the Mac world.

Also of note was the release of the Windows version of Safari, Apple's formerly proprietary Internet browser. The software, integrated across all Apple's products, could further drive Mac share gains. Safari, first created in 2003, boasts faster performance versus its rivals Firefox and Internet Explorer, along with secure surfing.

At the WWDC, Steve Jobs announced Safari 3 would run on Microsoft's (MSFT) XP and Vista and works with GoogleDocs and Gmail. There have been reports of bugs, which can be expected in a beta version, but the more important factor is that Safari puts Apple directly in front of consumers, increasing its mindshare by further parleying Apple's "goodness."

--Kimberly DuBord, Briefing.com

2:00 pm : A renewed wave of buying interest within the last 15 minutes, spearheaded by a turnaround in Technology, now has the major averages trading in split fashion. The 10-year yield still backing off its session highs, now standing at 5.19%, appears to be the most noticeable reason behind the resurgence in growth-oriented areas like Tech. In fact, the biggest reason behind the Dow recently turning positive has been a spike higher in Intel (INTC 22.45 +0.52).

Intel, which was already trending higher as shareholders applaud its plans to reportedly slash chip prices to regain market share lost to rival Advanced Micro Devices (AMD 13.97 +0.06), is now up 2.4%. Meanwhile, former Fed Chairman Greenspan was recently quoted as saying the global liquidity boom is near turning point, "enjoy it while you can."

08:24 am Texas Instruments (TXN)

Texas Instruments' (TXN, 35.79) mid-quarter guidance came in generally as expected and did little to alter our positive view on the stock. The company, which is one of the largest semiconductor manufacturers in the world, tightened its revenue and earnings guidance. The revised mid-point is slightly lower than prior guidance, causing some downward pressure on shares in the pre-market. Investors should take advantage of weakness to add to positions as the outlook for TI remains solid.

Revenue estimates went from $3.32-$3.60 billion to $3.36-$3.51 billion, suggesting sequential growth of 7.6%, and EPS from 39-45 cents per share to 40-44 cents for the second quarter. Reported strength in high performance analog, wireless handsets (high-end 3G), and DLP offset weakness in wireless infrastructure and calculators caused by the timing of ordering ahead of the third quarter back to school buying season. Inventories and orders point to a healthy end-market, in addition to a book to bill over one and stable lead times.

We became more constructive on the name back in January due to attractive valuations and an increasingly optimistic view of improved profitability due to product mix and operational and manufacturing efficiencies. Since then, shares have risen notably as the outlook solidified. TXN remains one of our favored stocks within the Technology sector. Shares trade at 20.6x forward earnings.

--Kimberly DuBord, Briefing.com