NEW YORK (CNN/Money) -
Technology stocks ended mostly lower on Friday as weakness in the semiconductor sector overshadowed positive earnings news from tech bellwether IBM.
The tech-dominated Nasdaq Composite index closed 29.56 points, or 1.6 percent, lower at 1,883.15, while the Philadelphia Semiconductor index fell 8.07 points, or 1.9 percent, to finish at 410.46.
International Business Machines Corp. (IBM: Research, Estimates), one of the Dow 30 components, boosted the blue-chip index after posting better-than-expected quarterly results on Thursday. Its shares rose 26 cents to $84.28.
The Dow closed 0.3 percent lower on the session.
In the semiconductor sector, PMC-Sierra Inc., which designs chips for telecommunications, was among some of the big losers on the Nasdaq, falling about 11 percent as investors expressed disappointment with the company's revenue forecast.
PMC-Sierra (PMCS: Research, Estimates), which said it expects its revenue to be flat or up slightly in the current quarter over the last, fell $1.29 to $10.46.
Other decliners in the sector included Intel Corp. (INTC: down $0.42 to $22.73, Research, Estimates), National Semiconductor (NSM: down $0.37 to $17.60, Research, Estimates) and Taiwan Semiconductor (TSM: down $0.09 to $7.01, Research, Estimates).
Shares of Smith Micro (SMSI: Research, Estimates), however, rose sharply on Friday after the software company said it has extended an existing multiyear agreement to provide wireless access support to Verizon Wireless.
In the hardware sector, Dell Computer stock rose after the world's largest personal computer maker raised its quarterly profit outlook as overseas sales improved and its tax rate declined.
Shareholders at the annual meeting, where Kevin Rollins was officially named chief executive, also narrowly defeated a proposal to have the company expense stock options.
Shares of Round Rock, Texas-based Dell (DELL: up $0.55 to $35.42, Research, Estimates) finished 1.6 percent higher.
Among other tech heavyweights, Oracle Corp. (ORCL: down $0.50 to $10.22, Research, Estimates) lost 4.7 percent, while Microsoft Corp. (MSFT: down $0.39 to $27.48, Research, Estimates) fell 1.4 percent.
Cisco Systems (CSCO: down $0.60 to $21.53, Research, Estimates) and JDS Uniphase (JDSU: down $0.07 to $3.16, Research, Estimates) also ended the session in the red.
On Friday, Netflix Inc. (NFLX: Research, Estimates) stock fell more than 28 percent as analysts said rising costs to acquire new subscribers raised the risks the company faces.
Shares of Netflix were off 27 percent. The company is a popular target for short-sellers who borrow and then sell a stock, betting it will go down so they can buy it back at a lower price.
The online DVD rental house on Thursday reported sharply higher revenue on subscriber growth and a 10 percent price hike.
-- from staff and wire reports
|
