Nokia Begins Earnings Season With a Thud

Nokia upended tech stocks Tuesday with an unexpected revenue warning.

Shares of Nokia plunged 19% after the company said first-quarter sales will decline 2%, well under estimates for a 3-7% rise.

The miss apparently was due to a market miscalculation by Nokia, which overemphasized low-end models at the expense of more popular midrange models. Partners RF Micro Devices and Texas Instruments lost 6-7% on the news.

The Nasdaq fell 19 to 2059, the S&P 500 lost 2 to 1148, and the Dow rose 12 to 10,570. Volume was unchanged at 1.4 billion shares on the NYSE, and rose to 1.81 billion on the Nasdaq. Decliners led 21-12 on the NYSE, and 21-10 on the Nasdaq. Downside volume was 61% on the NYSE, and 67% on the Nasdaq. New highs-new lows were 189-44 on the NYSE, and 180-15 on the Nasdaq.

After the close, Seagate warned.

During the day, Yahoo lost 2% on a Schwab Soundview downgrade based on overvaluation of Yahoo Japan shares. Yahoo reports earnings after the close Wednesday.

Research in Motion , which also reports tomorrow, rose 3%.

Brooktrout , Marimba , E.piphany , and Digital Impact all plunged 19% or more on earnings warnings. fell 10% on an SEC inquiry into trading activity in the company’s shares.

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