RIM, Nvidia Weigh on Tech Stocks
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The stock market recovered some of Tuesday's big losses on Wednesday, but Research In Motion (NASDAQ: RIMM) and Nvidia (NASDAQ: NVDA) weighed on the tech sector.
RIM shares fell 14.5% after the company said it expects earnings to come in at the low end of estimates, as existing customers are holding off on upgrades even as the company adds new subscribers. Apple (NASDAQ: AAPL) slipped 1% on the news, but Palm (NASDAQ: PALM) gained 3%.
And Nvidia shares fell 12.5% on a bigger than expected sales decline, sending the chip sector 1% lower on the day.
But Applied Materials (NASDAQ: AMAT) rose 0.8% despite lowering guidance for the second time in a week, while Computer Sciences (NYSE: CSC) gained 4% on mixed results.
The broader market posted modest gains as House and Senate negotiators hammered out a compromise $790 billion economic stimulus package that's expected to pass later this week, but the news wasn't enough to overcome doubts about the Treasury Department's latest bank bailout plan.
Technology Solutions (NASDAQ: TSCC) soared on plans to liquidate the company.
Ticketmaster (NASDAQ: TKTM) and Live Nation (NYSE: LYV) fell as their merger plans came under scrutiny.
Sirius XM (NASDAQ: SIRI) fell on worries that the company may face bankruptcy.
After the close, NetApp (NASDAQ: NTAP) fell on its results.
The Nasdaq rose 5 to 1530, the S&P 500 added 6 to 833, and the Dow gained 50 to 7939. Volume fell to 6.07 billion shares on the NYSE, and 2.26 billion on the Nasdaq. Advancers led by a 21-15 margin on the NYSE, and 15-10 on the Nasdaq. Upside volume was 67% on the NYSE, and 38% on the Nasdaq. New highs-new lows were 10-117 on the NYSE, and 4-115 on the Nasdaq.