NEW YORK (CNN/Money) -
Technology stocks ended mostly lower Wednesday, after a downgrade on Cisco Systems Inc. brought down sentiment in the entire tech sector.
Cisco Systems (CSCO: down $0.69 to $18.96, Research, Estimates) stock fell 3.5 percent after Deutsche Bank downgraded its shares to "hold" from "buy," citing an increasingly uncertain outlook, specifically in North America.
The nation's largest network gear maker has seen suppliers issue a series of recent financial forecasts that Deutsche Bank characterized as "poor guidance."
The tech-savvy Nasdaq Composite index closed 35.47 points, or 1.9 percent, lower at 1,885.71, while the Philadelphia Semiconductor index finished 12 points, or nearly 3 percent, lower at 391.74.
Shares of Lucent Technologies fell after the telecommunications equipment maker said it is planning additional cuts in retiree health-care benefits.
Murray Hill, N.J.-based Lucent said that rising costs and the company's need to remain competitive made the step necessary. The move will affect thousands of former employees, said Lucent's spokesman, Bill Price.
Lucent (LU: Research, Estimates) stock fell 7 cents, or 2 percent, to close Wednesday at $3.29 on the New York Stock Exchange.
Computer Associates stock also fell after the company said it would pay $225 million to settle federal accounting fraud charges, as the government accused its former chief executive of obstructing its investigation.
The Justice Department and the U.S. Securities and Exchange Commission accused the company of improperly booking $2.2 billion in revenues in 2000 and 2001 and obstructing the two-year investigation of the company.
A federal court approved an agreement that allows the company 18 months to pay the fine and implement an number of remedial policies to avoid prosecution.
Computer Associates (CA: Research, Estimates) stock fell 38 cents, or 1.5 percent, to finish at $25.30.
Among other tech heavyweights, Microsoft Corp. (MSFT: down $0.14 to $27.12, Research, Estimates) stock fell 0.5 percent, while Intel Corp. (INTC: down $0.66 to $20.42, Research, Estimates) stock lost 3.1 percent.
Oracle Corp. (ORCL: down $0.27 to $11.14, Research, Estimates) and Applied Materials (AMAT: down $0.52 to $17.11, Research, Estimates) also closed in the minus column. But Sun Microsystems (SUNW: up $0.14 to $4.20, Research, Estimates) stock ended Wednesday's session 3.5 percent higher.
Also on the upside, Tibco Software Inc. (TIBX: up $0.68 to $8.19, Research, Estimates) stock rose after the company reported a sharply higher quarterly profit, driven by strong sales to new customers. It also raised its outlook for fourth quarter results.
Shares of Jabil Circuit also rose after the contract electronics manufacturer posted a quarterly profit late Tuesday that more than doubled on stronger demand for computers, cell phones and other electronic products.
The company also issued a forecast for the current quarter in line with Wall Street estimates and said full-year fiscal 2005 sales would approach the high end of analyst forecasts, sending its shares up almost 7 percent in after-hours trade.
Shares of Jabil (JBL: Research, Estimates) rose $1.56, or 7 percent, higher to close at $23.74 on the New York Stock Exchange.
-- from staff and wire reports
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