HP Drops, NetApp Pops

An earnings report from HP that missed on all fronts sent stocks lower on Wednesday.

HP plunged 10% after missing earnings and revenue estimates and warning.

Since pricing pressure was partly to blame for the disappointment, another round of price cuts from Dell could keep the pressure on HP and other competitors.

Surprisingly, the Nasdaq only slipped fractionally on the news, as tech investors were encouraged by strong earnings from Network Appliance , which soared 16%.

Cautionary comments from GE also weighed on the broader market.

The Nasdaq slipped half a point to 1760, the S&P 500 lost 2 to 1000, and the Dow fell 31 to 9397. Volume declined to 1.21 billion shares on the NYSE, and 1.51 billion on the Nasdaq. Advancers led 17-14 on the NYSE, and 16-15 on the Nasdaq. Upside volume was 51% on the NYSE, and 43% on the Nasdaq. New highs-new lows were 233-17 on the NYSE, and 299-12 on the Nasdaq.

After the close, Synopsis and ADC Telecom beat estimates but warned.

During the day, Intuit gained 2% despite warning.

Microsoft , down 0.6%, could face a delay for its next-generation operating system. One analyst also thinks the software giant could become a telecom player thanks to voice over IP.

Photronics soared 17% after beating estimates.

Netflix surged 7% on a takeover rumor, with potential competitor Wal-Mart the rumored acquirer.

Internet Initiative Japan plunged 38% on reorganization concerns.

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