RealTime IT News

Seagate Leads Techs Lower

Shares of Seagate fell 5% Friday on reports that Apple will introduce a flash memory-based iPod later this year.

Analysts expect Apple to replace its 4GB hard drive-based iPod mini with a flash version with the same capacity. The deal could benefit Samsung, but hurt Apple hard-drive suppliers Seagate and Hitachi , analysts said.

Morgan Stanley downgraded Seagate shares Friday, noting that the company is well-positioned to shift its focus from 1-inch to 2.5-inch drives, but the Wall Street firm said it still expects tough going in the sector in the second half of the year. Standard & Poor's countered by calling the sell-off a buying opportunity, saying that any disruption would be minimal.

The broader market stumbled on falling consumer confidence and cautionary comments about the housing market by Fed Chairman Alan Greenspan.

The Nasdaq fell 13 to 2120, the S&P lost 7 to 1205, and the Dow dropped 53 to 10,397. Volume declined to 1.52 billion shares on the NYSE, and 1.3 billion on the Nasdaq. Decliners led 22-9 on the NYSE, and 20-9 on the Nasdaq. Downside volume was 79% on the NYSE, and 71% on the Nasdaq. New highs-new lows were 68-37 on the NYSE, and 54-45 on the Nasdaq.

HP edged higher on a $4 billion stock buyback plan.

OmniVision and Peerless jumped on their results.

Credence tumbled 17% on its results.