TECH STOCKS: Broad Losses Hit Tech Sector At The Close

By Rex Crum

Technology stocks put in a roundly negative trading performance Monday as most sector leaders closed in the red despite more positive reaction to both Amazon.com Inc.'s strong earnings report and Microsoft Corp.'s release of the Windows 7 operating system.

The Nasdaq Composite Index (RIXF) -- up by more than 27 points early in the session -- turned around mid-afternoon and closed with a loss of 12.6 points to end the day at 2,141. The Morgan Stanley High Tech 35 Index (MSH) was also closed in the red while the Philadelphia Semiconductor Index (SOX) managed to eke out a small gain.

The tech sector was caught up in a broad-market decline that was spurred on by negative sentiment about certain aspects of the banking industry.

broadband:clip-type=video&file-name=102309keyboard&guid={A02BAA32-D4E4-4009-AE5E-BF0DAF259B42}Nearly every major tech stock ended up losing ground. Declines came from Apple Inc. (AAPL), Dell Inc. (DELL), Cisco Systems Inc. (CSCO), Hewlett-Packard Co. (HPQ) and IBM Corp. (IBM).

Amazon (AMZN) still managed to buck the losing trend, as the online retailer's shares surged another $6.15, or more than 5%, to close at $124.64 as investors continued to react positively to the company's third-quarter reports in which it reported a 69% increase in earnings. Amazon also raised its forecasts for its crucial, end-of-the-year holiday-season quarter.

Microsoft (MSFT) shares also managed to gain ground, rising 66 cents to $28.68 after industry reports of strong sales of the new Windows 7 operating system, which was released on Oct. 22.

Marvell Technology Group Ltd. (MRVL) shares rose 41 cents, or almost 3%, to $14.99 after the maker of storage and communications semiconductors raised its third-quarter revenue forecast. Marvell now estimates it will report sales of $760 million to $775 million, up from its earlier estimate of $680 million to $730 million in revenue.