By Benjamin Pimentel and Dan Gallagher, MarketWatch
SAN FRANCISCO (MarketWatch) -- Declining shares of Netflix Inc.,
EMC Corp. and Apple Inc. weighed on the tech sector on Tuesday,
offsetting gains in shares of Hewlett-Packard and VMware.
The Nasdaq Composite Index (RIXF) eked out a 0.2% gain to close
at 3,930. But the Morgan Stanley High-Tech Index (MSH) and the
Philadelphia Semiconductor Index (SOX) were each down a
fraction.
Apple (AAPL) shares were volatile, trading down 0.3% to close at
$519.87 after the company unveiled new products, including the iPad
Air, a thinner, lighter version of its popular tablet. The stock
turned positive briefly as the new iPad was introduced, but slipped
back into red.
Netflix (NFLX) also made a dramatic reversal, giving up gains to
fall 9%, closing at $322.52. The online streaming company reported
better-than-expected earnings for the third quarter and gave an
earnings forecast for the current period that was far ahead of Wall
Street's estimates.
Netflix shares had already more than tripled since the start of
the year, leading some analysts to question the stock's high
valuation despite the strong results. The stock was downgraded to a
sell rating by S&P Capital IQ.
Nokia (NOK) rose 3% to close at $7.35 after the company took the
wraps off its first tablet. The device falls under the company's
Lumia brand of Windows Phone devices. The Lumia 2520 tablet will
start at $499.
VMware (VMW) shares rose 3% to close at $85. The maker of
enterprise software reported a 66% gain in earnings on Monday
afternoon that exceeded Wall Street's expectations.
EMC Corp. (EMC) -- which owns the majority of VMware's shares --
was down 4.8% to close at $24.04 after reporting a drop in
third-quarter earnings and a reduction in its full-year
outlook.
Texas Instruments (TXN) shed 1.7% to close at $40.28 after the
chip maker reported a drop in profit and a weaker-than-expected
outlook.
On the other hand, Lexmark International Inc. (LXK) shares
surged 6% to close at $38.02 after the printer maker posted results
that were at the high end of analysts' estimates and issued a
positive forecast.
Shares of H-P (HPQ) rose 2% to close at $24.05.
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