NEW YORK (CNN/Money) -
Technology stocks made a huge turnaround in late trading Wednesday, regaining strength after investors shrugged off good earnings news from Cisco Systems and Qualcomm Inc.
The tech-dominated Nasdaq index ended 5.76 points, or 0.3 percent, lower at 1,925.59. The index fell as low as 1,878.77 earlier in the session.
The Philadelphia Semiconductor index dropped 8.25 points, or 1.8 percent, to close at 461.90.
Shares of Cisco Systems (CSCO: down $0.29 to $21.96, Research, Estimates) dipped on investor concern about rising inventories at the company, even though it offered a strong outlook for its current quarter.
The decline came the day after Cisco posted record third-quarter profits and cited an improving economy for its rising sales. The company added jobs in the quarter for the first time in three years and said it plans to add another 1,000 jobs this year.
Shares of Cisco, the world's largest maker of equipment that directs Internet traffic, closed 29 cents, or 1.3 percent, lower at $21.96.
Qualcomm Inc. (QCOM: Research, Estimates) on Wednesday morning echoed Cisco's confidence, raising its 2004 forecasts because of higher licensing royalties and strong demand for chips used in phones with cameras and Internet access.
But shares in Qualcomm fell as well, as investors, who already had been putting high hopes in technology stocks, wanted more.
Shares of Nokia (NOK: Research, Estimates) also fell after its European counterpart closed at a 21-month low, hit by negative telecoms market sentiment following Cisco's results that added to the gloom surrounding the Finnish firm's own outlook.
Nokia's American Depositary Receipts (ADRs) finished 10 cents, or 0.1 percent, lower at $13.60.
Other actively traded Nasdaq companies included Intel Corp. (INTC: down $0.20 to $27.57, Research, Estimates), Microsoft (MSFT: unchanged at $25.94, Research, Estimates), Oracle Corp. (ORCL: down $0.08 to $11.59, Research, Estimates) and Sirius Satellite Radio (SIRI: up $0.02 to $3.17, Research, Estimates).
Active tech stocks on the New York Stock Exchange included Nortel Networks (NT: up $0.02 to $3.95, Research, Estimates), Lucent Technologies (LU: up $0.03 to $3.37, Research, Estimates), Texas Instruments (TXN: down $0.36 to $25.98, Research, Estimates) and Advanced Micro Devices (AMD: down $0.34 to $15.14, Research, Estimates).
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