Tech Winners & Losers: AT&T

Tech stocks were weighed down on Tuesday by a higher-than-expected increase in wholesale-level inflation, which also took a toll on the rest of the market.

The Nasdaq lost nearly 33 points, or 1.3%, to 2384 in recent trading.

Shares of AT&T(T Quote) fell 1.9% to $30.80 after Credit Suisse lowered its price target on the stock to $36 from $39, citing higher cost of capital as a result of a weak macroeconomic environment.

Hewlett-Packard(HPQ Quote) was down 2% to $43.73 in anticipation of its third-quarter earnings after the closing bell. The computer maker faces potential headwinds from its business overseas. Its U.S. PC sales have only shown modest growth in the second quarter, up 5.6% compared with Dell's(DELL Quote) 11.9% growth and Apple's(AAPL Quote) 38% growth, according to industry research firm Gartner.

Netflix's shares were down 1.7% after Wedbush Morgan lowered its sales estimates for the company to $345 million from $351 million and its earning estimates to 34 cents a share from 36 cents a share. Netflix experienced a glitch in its DVD shipments recently and is refunding 15% of monthly subscription fees to some of its affected customers.

Shares of Advanced Micro Devices(AMD Quote) slipped 5.4% to $5.59 as its competitor, Intel(INTC Quote) prepared to unveil its latest microprocessor redesign, which could shift more market share in its favor. Intel's stock was down 1.6% to $23.62.