By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Technology stocks slid into the
red as falling semiconductor shares weighed the sector down,
offsetting gains in shares of Amazon.com Inc., which got a lift
from its rollout of a new tablet.
The chip retreat was led by Advanced Micro Devices Inc. (AMD),
which fell more than 3%, while LSI Corp. (LSI) lost 4% and SanDisk
Corp. (SNDK) declined 2%.
In a note, J.P. Morgan analyst Christopher Danely wrote that
"most investors we met with last week indicated they are waiting
for another round of estimate cuts in October and a resolution in
the European financial crisis before buying semiconductor
stocks."
However, Danely also said that in his view, "semiconductor
stocks have bottomed and that investors should buy before the
likely 1Q12 recovery."
That view apparently was not widely shared by investors
Wednesday, as the Philadelphia Semiconductor Index (SOX) slid 1.5%.
The index has lost more than 10% since Jan. 1.
But the tech sector got a lift from Amazon.com (AMZN), which was
trading up more than 4% as the company unveiled its new anticipated
tablet.
Shares of Microsoft Corp. (MSFT) also moved up by 1%. The
software giant announced Wednesday that it was expanding its
smartphone partnership with Samsung.
The Nasdaq Composite Index (RIXF) slipped 0.6% to 2,533.
Jabil Circuit Inc. (JBL) stock was up more than 7% after the
contract manufacturer reported upbeat earnings and a
stronger-than-expected outlook.
Shares of Accenture PLC (ACN) added more than 1% after the IT
services and consulting firm reported a jump in profit.
IT services and distribution firm Synnex Corp. (SNX) also saw
its stock rise more than 11% after the company posted strong
quarterly results.
Among the notable decliners was Juniper Networks Inc. (JNPR),
down 4.6%.
In a note, FBN Securities analyst Shelby Seyrafi initiated
coverage of the stock with a sector-perform rating, saying Juniper
"has many new product cycles beginning, but service-provider
spending is slowing while Cisco is becoming more aggressive."
Seyrafi also initiated coverage of Cisco Systems Inc. (CSCO)
with an outperform rating. Cisco shares were up 0.7% at last
check.