By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Technology stocks started in
mostly negative territory Tuesday, highlighted by a sharp decline
in Apple Inc. as investors reacted to news that Steve Jobs, the
company's iconic chief executive, is going on another medical
leave.
Shares of Apple (AAPL) fell 4% in heavy trading.
"While Steve Jobs's health has been a constant concern for
investors, given previous issues and his importance to the company,
we believe this announcement will still come as a negative surprise
given it is the second leave in just two years, and this time there
doesn't appear to be a date set that he expects to be back," wrote
Barclays Capital analyst Ben Reitzes in a note.
The Nasdaq Composite Index (RIXF) slipped 0.1% to 2,753. The
Morgan Stanley High Tech 35 Index (MSH) was up a fraction, but the
Philadelphia Semiconductor Index (SOX) declined 0.3%.
Meanwhile, shares of Yahoo Inc. (YHOO) fell 1.7% as the Internet
giant's stock was downgraded to equal weight from overweight by
Morgan Stanley.
Chip maker Nvidia Corp. (NVDA) also saw its shares fall 1.6% as
BMO cut its rating on the stock to market perform from
outperform.
Other major tech shares joined in the decline, including Intel
Corp. (INTC), Applied Materials Inc. (AMAT) and Juniper Networks
Inc. (JNPR).
Advancers included Oracle Corp. (ORCL), Microsoft Corp. (MSFT)
and Texas Instruments Inc. (TXN)