TECH STOCKS: Tech Stocks Lower In Early Trading

By Rex Crum

Technology stocks fell Tuesday, in line with a broader market decline and led by shares of Hewlett-Packard Co. after the company reported lower earnings and weak sales.

The tech-heavy Nasdaq Composite Index (RIXF) was off by 2.3 points at 1,953, while the Morgan Stanley High Tech 35 Index (MSH) and the Philadelphia Semiconductor Index (SOX) both dipped into the red

H-P (HPQ) shares fell 55 cents, or 1.3%, to $43.55 after the company said late Monday that its fiscal third-quarter earnings declined by 19% from the same period a year ago.

However, H-P's results still topped the estimates of Wall Street analysts, many of whom said the company's profit margins remain strong, and were impressed by H-P's fourth-quarter earnings outlook, which exceeded analysts' consensus forecasts.

Losses also came from IBM Corp. (IBM), Microsoft Corp. (MSFT), Texas Instruments Inc. (TXN) and Intel Corp. (INTC).

But the tech sector managed to show some signs of life, with gains coming from Apple Inc. (AAPL), EMC Corp. , Cisco Systems Inc. (CSCO) and Dell Inc. (DELL).

Storage-technology company NetApp Inc. rose 15 cents a share to $23. Analysts at Bank of America and Avian Securities raised their ratings on NetApp's stock ahead of the company's quarterly results, due after the market close.