HP Fails to Inspire

HP’s better than expected results failed to inspire investors, who sent shares of the company 5% lower on Wednesday.

Rising inventories and concerns about pricing and competitive pressures weighed on the stock, which has enjoyed two stellar years under CEO Mark Hurd. But with the stock up 30% in six months, investors didn’t need much of an excuse to take profits.

Surprisingly, despite the decline in HP shares and a stronger than expected consumer inflation reading, tech stocks managed modest gains on the day, but blue chips ended the day lower.

Apple gained 4% on bullish comments from Prudential.

Microsoft rose on reports that Vista sales may be stronger than expected.

Jupitermedia , publisher of this Web site, soared 26% on a New York Post report that the company could be acquired by Getty Images .

Epiq and Nice Systems rose on their earnings reports.

Pixelworks jumped on a deal with Samsung.

Motorola slipped on growth concerns.

The Nasdaq rose 5 to 2518, the S&P 500 slipped 2 to 1457, and the Dow fell 48 to 12,738. Volume rose to 2.63 billion shares on the NYSE, but declined to 2.08 billion on the Nasdaq. Decliners led 17-15 on the NYSE, while advancers led 15-14 on the Nasdaq. Upside volume was 46% on the NYSE, and 57% on the Nasdaq. New highs-new lows were 292-17 on the NYSE, and 208-28 on the Nasdaq.