Tech stocks led a broad market retreat on Monday after an analyst made cautionary comments on the chip sector.
Stifel Nicolaus analyst Cody Acree downgraded a half-dozen chip stocks on concerns about inventory issues and high valuations. Broadcom
and Texas Instruments
were two of the bigger names hit on the news, and the chip sector
lost more than 2 percent on the day.
Blue chips started higher on a big court victory for Pfizer
, but followed tech stocks lower to end the day in the red. Wholesale inflation will be reported Tuesday morning.
The Nasdaq lost 29 to 2222, the S&P 500 fell 7 to 1259, and the Dow lost 39 to 10,836. Volume fell to 2.21 billion shares on the NYSE, and 1.77 billion on the Nasdaq. Decliners led 23-9 on the NYSE, and 21-9 on the Nasdaq. Downside volume was 68 percent on the NYSE, and 80% on the Nasdaq. New highs-new lows were 70-108 on the NYSE, and 93-73 on the Nasdaq.
rose 9 percent on a buyout offer.
soared 38 percent on new video software.
fell 7 percent on its outlook.