By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Technology stocks joined a broad
market retreat on Monday as the government shutdown entered Day 14,
but Netflix Inc. shares rallied on news of a possible deal with
cable companies.
Netflix (NFLX) was up nearly 3% after The Wall Street Journal
reported that the company is in talks with cable operators to
include its streaming-video service in set-top boxes.
But the start of a new week with the federal government still
shut down sent stocks falling in early trades, as the Nasdaq
Composite Index (RIXF) shed 0.3% to 3,780. The Dow Jones Industrial
Average (DJI) lost 73 points.
Facebook Inc. (FB) was among the top decliners, sliding 2% after
the social network announced its acquisition of Onavo, a privately
held compression technology and mobile analytics company.
Expedia Inc. (EXPE) also declined by more than 7% after Deutsche
Bank analyst Ross Sandler cut his rating on the online travel
agency to hold from buy, citing intensifying competition in the
U.S. market. Sandler also pointed to worries about management
changes at Hotels.com.
Other major tech issues were in the red, including Microsoft
Corp. (MSFT) , Google Inc.(GOOG) and Hewlett-Packard (HPQ) .
The Philadelphia Semiconductor Index (SOX) was off a fraction,
even as some major chip stocks posted gains. Advanced Micro Devices
(AMD) was up more than 3%.
Wedbush analyst Betsy Van Hees raised her rating on the stock to
outperform from neutral, telling clients in a note: "We believe in
the near-term AMD will benefit from the ramp of gaming consoles and
a modest lift from second half of the year seasonality and
longer-term is well positioned to gain market share in servers with
its dual architecture strategy."
Shares of Intel Corp. (INTC) , Nvidia Corp.(NVDA) and SanDisk
Corp (SNDK) were each also up a fraction.
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