Adobe, palmOne Trounce Estimates

Adobe and palmOne reported blow-out results after the close on Monday.

Adobe continued to defy predictions of a slowdown, reporting earnings of 43 cents a share, four cents above Wall Street estimates. Revenues of $403.7 million beat $391.2 million forecasts, and the company raised November quarter earnings and revenue guidance above expectations. The stock gained 3% after hours.

palmOne reported yet another blow-out quarter, with pro forma earnings of 43 cents a share, 23 cents better than analysts expected. Revenues of $273.1 million bested $269.3 million forecasts. The stock initially soared 15% in after-hours trading, but then gave back all those gains and then some when the company lowered guidance on the conference call.

Also after the close, Red Hat beat earnings estimates but came in light on revenues, and Silicon Storage warned.

Stocks fell Monday on rising oil prices and earnings warnings from Colgate and Unilever , but another strong day for chip stocks limited the tech sector’s losses.

The Nasdaq slipped 2 to 1908, the S&P 500 fell 6 to 1122, and the Dow tumbled 79 to 10,204. Volume declined to 1.2 billion shares on the NYSE, and 1.57 billion on the Nasdaq. Decliners led 19-13 on the NYSE, and 18-12 on the Nasdaq. Downside volume was 61% on the NYSE, and 48% on the Nasdaq. New highs-new lows were 144-23 on the NYSE, and 86-39 on the Nasdaq.

PMC-Sierra climbed 4% despite warning. A buyback announcement from Novellus and a sector upgrade from Bernstein also boosted chip stocks, which gained 3% on the day.

HP also rose on a buyback announcement.

UTStarcom and fell on warnings.

Roxio , Tut Systems and Eon Communications surged on bullish outlooks.

OpenTV jumped 9% on a European cable deal.

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