Tech Sector Lower Ahead of Apple, Microsoft Deals
By Matt Andrejczak
SAN FRANCISCO (Dow Jones)--Technology stocks edged lower early Wednesday
ahead of expected announcements from Apple Computer (AAPL) and Microsoft
(MSFT) about new business ventures.
The Nasdaq Composite Index gave up more than 3 points, largely in line with
the broader market, after a strong run in the previous session.
The Amex Computer Technology Index shed more than 3 points. The Philadelphia
Semiconductor Index fell more than 5 points as index component Altera Corp.
warned its gross margin will be lower than expected.
Among the gainers was Hewlett-Packard & Co. (HPQ), which rose 23 cents to
$27.48. UBS upgraded the printing and computer hardware giant to buy from
neutral, on hopes that restructuring will continue to bear fruit.
"Despite shares being up about 30% this year, we believe HP still may
actually be in the middle of its move under new CEO Mark Hurd," UBS said.
Apple fell 9 cents to $48.71, but clung near the all-time high reached in
trading Tuesday.
Apple and Motorola Inc. (MOT) are widely expected to unveil a mobile phone
that will include Apple's technology for downloading songs from the Internet
onto portable music players, and have scheduled a media event Wednesday in San
Francisco.
Microsoft dropped 10 cents to $27.90. Microsoft Chairman Bill Gates and
Chief Executive Steve Ballmer will address a conference at the company's
Redmond, Wash., headquarters later Wednesday to outline its new strategy for
its offerings to small and midsize businesses.
Meanwhile, Microsoft filed a new appeal with a European court related to the
European Commission's 2004 landmark antitrust ruling against the company. The
latest legal move by the world's biggest software company seeks to clear up
whether some of its software source code should be kept secret or whether it
must be made public.
Elsewhere, Altera (ALTR) fell more than 7% early Wednesday after the chip
manufacturer warned its gross margin will be lower than anticipated. The stock
fell $1.60 to $20.20.
McData Corp. (MCDTA) fell 4% to $5.08. Late Tuesday, the storage maker swung
to an unexpected second-quarter loss.
Electronics for Imaging Inc. (EFII) rose 18% to $24.30. The maker of servers
and controller devices for printers late Tuesday lifted its third-quarter
forecast.
