By Benjamin Pimentel
The technology sector slipped into the red on Wednesday as
shares of sector giants Cisco Systems and Microsoft Corp.
retreated.
The declines overshadowed gains from Applied Materials Inc.
(AMAT) shares of which rose a fraction on the semiconductor
equipment maker's revised sales outlook for the fiscal year ending
in October.
Also, shares of Research In Motion (RIMM) and Micron Technology
(MU) were both down ahead of their latest quarterly reports, due
after the closing bell.
Two IPOs trading higher also highlighted Wednesday's tech
action.
The Nasdaq Composite Index (RIXF) gave up nearly 13 points, or
0.5%, to 2,398, as shares of Cisco (CSCO) slid 2.3% while Microsoft
(MSFT) lost 1.6%.
The tech benchmark holds a fractional gain so far this week, as
it ends the first quarter more than 5% higher.
The Philadelphia Semiconductor Index (SOX) was down 0.6%,
despite Applied Materials' gain.
Needham & Co. analyst Edwin Mok reiterated a buy rating on
Applied. "With improved operating leverage, especially in the solar
group, we believe AMAT will be able to deliver strong earnings
growth over the next few years," he wrote in a Wednesday note.
As for Wednesday's IPOs, shares of Meru Networks (MERU) rallied
nearly 28%, while software maker SS&C Technologies (SSNC) saw
its shares rise 0.5%.
The tech sector appeared to follow the broader market's lead, as
investors first reacted to a report that the U.S. private sector
cut 23,000 jobs in March by selling down stocks only to see them
recovery much of their early losses by midday.