By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Technology stocks dropped on
Tuesday, as shares of International Business Machines Corp. fell
after Credit Suisse downgraded the stock to underperform.
IBM (IBM) declined 2.3% to close at $190.99 after Credit Suisse
analyst Kulbinder Garcha cut the stock's rating, saying, "future
organic growth will be challenging."
"Organically we believe IBM is effectively in decline," Garcha
wrote, citing among the challenges the company faces the shift to
cloud that "continues to present risks given IBM's technology
positioning."
IBM's stock was the top decliner on the Dow Jones Industrial
Average (DJI), which ended off 93.39 points.
Also in the red were shares of Hewlett-Packard Co. (HPQ), Intel
Corp.(INTC), Facebook Inc. (FB) and Microsoft Corp.(MSFT).
Gains came from Dell Inc. (DELL) and Oracle Corp. (ORCL).
The Nasdaq Composite Index (RIXF) fell 27.18 points, or 0.7%, to
end at 3,665.77.
The Philadelphia Semiconductor Index (SOX) was off a
fraction.
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