By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- An early tech rally fizzled
Tuesday as the sector was weighed down by slumping shares of
Juniper Networks Inc., Electronic Arts Inc. and ARM Holdings
PLC.
The Nasdaq Composite Index (RIXF) closed down 0.3% at 3,229. The
Morgan Stanley High Tech 35 Index(MSH) was down 0.3%, while the
Philadelphia Semiconductor Index (SOX) fell by 0.4%.
Juniper (JNPR) closed down more than 5% after Goldman Sachs
downgraded the networking gear maker's stock to sell, citing
"competitive and disruptive pressures."
Analyst Simona Jankowski pointed to a new Cisco Systems Inc.
(CSCO) product launched in February, and the continuing shift to
software-defined networking, a trend that is also seen posing a
threat to Cisco and other hardware companies. Cisco shares were
down a fraction.
U.S.-traded shares of ARM Holdings (ARMHY) closed down 1.7% on
news that Chief Executive Warren East was retiring and will be
replaced by Simon Segars.
Another CEO transition was taking place at Electronic Arts (EA)
where CEO John Riccitiello has resigned. EA shares shed more than
8% by the closing bell.
On the upside, shares of Dell Inc. (DELL) edged higher by nearly
1% after an analyst said the company could get a higher bid from
Blackstone "that is superior" to the current $13.65 a share offer
from Silver Lake Partners and Chief Executive Michael Dell, a
financial analyst said Tuesday, citing recent press reports.
In a note, Sterne Agee's Shaw Wu said that if that were to
happen "shareholders should be happy and take advantage," noting
that "an already high debt load will likely limit a buyout team's
ability to raise its offer materially from current levels."
EBay (EBAY) picked up nearly 2% to close at $51.09 after JMP
Securities named the company as its "top pick" among 10 Internet
firms that it started coverage on Tuesday morning. The broker also
set buy ratings for Google (GOOG) and AOL (AOL) but tagged
Amazon.com (AMZN) and Facebook with neutral views.
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