TECH STOCKS: Nokia Warning Helps Weigh Down Tech Stocks

By Rex Crum

Technology stocks tried to put the brakes on broad losses Wednesday after an earnings and sales warning from Nokia Corp. put a damper on much of the sector.

Before the bell, the mobile-device and wireless-equipment giant cited increased competition from high-end handset rivals and a decline in the euro as factors behind the forecast it revised lower for the second quarter.

Nokia (NOK) now expects device and services sales for the quarter to be, at best, at the low end of its previously forecast range of $8.2 billion to $8.9 billion.

U.S.-listed shares of Nokia fell 86 cents, or nearly 9%, to $8.96 following its warning.

Several other telecom and telecom-related stocks also retreated.

RF Micro Devices Inc. (RFMD) and Skyworks Solutions Inc. (SWKS) got caught up in the Nokia warning, as both count the company as one of their top customers. RF Micro's shares fell 5 cents to $4.71 as Skyworks moved down 44 cents to $16.80.

Declines also came from National Semiconductor Corp. (NSM), down 64 cents, or more than 4%, to $14.37, and from Qualcomm Inc. (QCOM), Intel Corp. (INTC), Dell Inc. (DELL), Hewlett-Packard Co. (HPQ) and Microsoft Corp. (MSFT).

The Nasdaq Composite Index (RIXF) fell nearly 12 points to 2,294, while the Philadelphia Semiconductor Index (SOX) and the Morgan Stanley High Tech 35 Index (MSH) were each down more than 1%.

A few gainers managed to emerge.

Shares of Apple Inc. (AAPL) rose $3.46 to $263.14 on the belief that it is taking some market share away from Nokia, while Cisco Systems Inc. (CSCO) and SanDisk Corp. (SNDK) also gained ground.