By Rex Crum
Tech stocks were mostly higher Wednesday, as several bellwether
companies rose, but UBS cast a shadow on part of the sector after
the brokerage cut its ratings on Hewlett-Packard Co., Intel Corp.
and several others.
Among leading tech stocks, gains came from Apple Inc. (AAPL),
Microsoft Corp. (MSFT), Cisco Systems Inc. (CSCO), Google Inc.
(GOOG), Yahoo Inc. (YHOO) and NetApp Inc. (NTAP).
The Nasdaq Composite Index (RIXF) rose almost 19 points to 2,227
and the Morgan Stanley High Tech 35 Index (MSH) was up
slightly.
However, the Philadelphia Semiconductor Index (SOX) dropped 1%,
as one of its top components, chip giant Intel (INTC), fell 26
cents, or 1.5%, to $17.86.
Intel retreated after UBS analyst Uche Orji cut his rating on
the stock to neutral from buy. In a research note, Orji said he
made the move due to signs that PC demand is looking weak heading
toward the fourth quarter of the year.
Orji also cut his price target on Intel's stock to $19.50 a
share from $28.
Another UBS analyst, Maynard Um, cut his rating on H-P (HPQ) to
neutral from buy, and lowered his price target on the company's
stock to $44 a share from $54. Um cited the outlook for weakness in
the PC market, as well as uncertainty over H-P's search for a new
chief executive among the reasons for his downgrade.
H-P late Monday sued its former CEO, Mark Hurd, saying he is
violating terms of his exit agreement with the company by taking
the job of co-president at Oracle Corp. (ORCL).
In a statement, Oracle CEO Larry Ellison blasted H-P, calling
its action a "vindictive lawsuit" and that H-P "is making it
virtually impossible for Oracle and H-P to continue to cooperate
and work together in the IT marketplace."
Imaging-device chip maker Zoran Corp. (ZRAN) fell 54 cents a
share, or 6.6%, to $7.68 after the company said it would acquire TV
set-top box maker Microtune Inc. (TUNE) for $166 million in cash.
Microtune's shares rose 45 cents, or more than 18%, to $2.92.