By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Technology stocks joined a broad
market retreat on Monday as Wall Street reacted to a controversial
bank bailout plan in Cyprus.
The Nasdaq Composite Index (RIXF) gave up 23 points, or nearly
1%, to stand at 3,226. The Philadelphia Semiconductor Index (SOX)
and the Morgan Stanley High Tech 35 Index (MSH) were each down
about 1%.
The Dow Jones Industrial Average (DJI) was down 53 points at
14,460 as investors were stunned by news that euro-zone leaders are
pushing for a levy on Cypriot bank deposits to cover the cost of a
rescue.
Major tech issues were in the red, including Dow components
Cisco Systems (CSCO) , Intel Corp.(INTC) and IBM Corp.(IBM)
However, Hewlett-Packard (HPQ) bucked the trend, rising 3% to
emerge as the best Dow performer. H-P got a lift from a Morgan
Stanley note upgrading the stock to overweight, or buy, citing the
Silicon Valley giant's free cash flow potential.
Also defying gravity were shares of mobile gaming company Glu
Mobile Inc. (GLUU) which were up nearly 8%. Northland Capital
Markets analyst Darren Aftahi upgraded the stock to outperform from
market perform pointing to signs of better-than-expected sales from
smartphone games.
But social media stocks were struggling. Facebook Inc. (FB) was
off a fraction at $26.50, while LinkedIn Corp. (LNKD) was down
1.6%. Zynga Inc (ZNGA) also was behind 1.6%.
Chip stocks were also in retreat mode. SanDisk Corp. (SNDK) was
down more than 1%, while Nvidia Corp. (NVDA) and Texas Instruments
(TXN) were each behind a fraction.
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