TI Drags Down Techs

Disappointing guidance from Texas Instruments weighed on tech stocks Tuesday, as investors sent both shares of TI and the chip sector 3% lower on the day.

Follow a big warning on Friday from Intel , investors had little reason to hold chip stocks. Investors will get another look at the sector on Thursday, when National Semi reports.

Still, TI said wireless handset and infrastructure sales have been a bright spot, a point underscored by Qualcomm , which raised guidance Tuesday morning. Qualcomm said both earnings and sales will exceed Wall Street forecasts, sending its stock 1.3% higher on the day.

Blue chip stocks posted modest gains Tuesday, as financial stocks rose after interest rates turned lower.

The Nasdaq lost 17 to 2268, the S&P 500 slipped 2 to 1275, and the Dow rose 22 to 10,980. Volume declined to 2.27 billion shares on the NYSE, and 1.94 billion on the Nasdaq. Decliners led 23-8 on the NYSE, and 21-9 on the Nasdaq. Downside volume was 71% on the NYSE, and 76% on the Nasdaq. New highs-new lows were 39-54 on the NYSE, and 85-58 on the Nasdaq.

AT&T and BellSouth both lost ground after analysts questioned whether their proposed merger will clear antitrust concerns.

LSI gained 8% on a restructuring plan.

Semtech lost 6% on its results.

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