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.
But the sector selloff eased up a bit as shares of
Hewlett-Packard Co. (HPQ) and Glu Mobile Inc. (GLUU) posted solid
gains, and Apple Inc. (AAPL) and Microsoft Corp. (MSFT) also turned
positive.
The Nasdaq Composite Index (RIXF) was still down, giving up 14
points, or 0.4%, to stand at 3,235. The Philadelphia Semiconductor
Index (SOX) and the Morgan Stanley High Tech 35 Index (MSH) were
each down fractionally.
The Dow Jones Industrial Average (DJI) was down 36 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 Inc. (CSCO) and IBM Corp.(IBM)
Hewlett-Packard bucked the trend, rising 2.4% 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, up 14%. 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.
Social-media stocks were struggling. Facebook Inc. (FB) was off
a fraction at $26.64, while LinkedIn Corp. (LNKD) was down 2.3%.
Zynga Inc (ZNGA) also was behind 2%.
Chip stocks were in retreat mode. SanDisk Corp. (SNDK) was down
more 1%, while Nvidia Corp. (NVDA) and Texas Instruments (TXN) were
each behind a fraction. However, Intel Corp (INTC) was trading
flat.
Advanced Micro Devices (AMD) shares were trading flat at $2.60.
Macquarie Capital raised the stock's rating to outperform, citing
the company's potential in the company's videogame business.
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