TECH STOCKS: Tech Stocks Manage To Eke Out Small Gains

By Rex Crum

Technology stocks eked out tiny gains Wednesday, after struggling to overcome the early negative effects of an earnings and sales warning from Nokia Corp. that earlier put a damper on much of the sector.

Before the market opened, 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.

Nokia fell $1.05 a share, or almost 11%, to close at $8.77 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 14 cents, or 3%, to $4.62 as Skyworks gave up 7 cents a share to close at $17.17.

Declines also came from National Semiconductor Corp. (NSM), down 29 cents, or almost 2%, to $14.71, and from Qualcomm Inc. (QCOM), Dell Inc. (DELL), Cisco Systems Inc. (CSCO) and Microsoft Corp. (MSFT).

The Nasdaq Composite Index (RIXF) managed to break even and close at 2,305, while the Philadelphia Semiconductor Index (SOX) edged into positive territory and the Morgan Stanley High Tech 35 Index (MSH) ended the day in the red.

A few gainers managed to emerge, with Apple Inc. (AAPL) rising $7.56 a share, or more almost 3%, to $267.25.

Among the reasons for Apple's rise were a belief that it is taking some market share away from Nokia, and the company saying that its customers had placed more than 600,000 pre-orders for the new iPhone 4 on Tuesday, the first day that orders for the device could be placed.

However, AT&T Inc. (T), which carries the iPhone in the U.S., said it was suspending pre-orders of the new iPhone so that it could fill its current slate of orders.

Gains also came from Hewlett-Packard Co. (HPQ), SanDisk Corp. (SNDK), IBM Corp. (IBM) and Intel Corp. (INTC).