Wall Street Stumbles Again

Elsewhere, HSBC Holdings (HBC Quote) posted a 5% rise in profit for 2006. However, the lender said it was taking a charge of $10.57 billion, due to bad subprime loans. The stock finished lower by 36 cents, or 0.4%, to $85.91.

In the tech space, chipmaker AMD warned that first-quarter revenue likely won't meet its guidance of $1.6 billion to $1.7 billion. Shares slumped by 23 cents, or 1.6%, to $13.95.

Meanwhile, BlackBerry maker Research In Motion (RIMM Quote) said it will restate financials dating back to fiscal 2004, because of past stock option reporting errors. The company expects to reduce previous earnings by $250 million. RIM slid $1.44, or 1.1%, to $134.52.

In M&A activity, AT&T (T Quote) is reportedly interested in acquiring Alltel (AT Quote), according to an article in the Wall Street Journal. AT&T eased 2% to $35.72, and Alltel gave back 2.2% to close at $58.60.

Hand-held device maker Palm (PALM Quote) was moving lower amid rumors that Nokia (NOK Quote) will purchase it. Palm sank 9.8% to $16.50, and Nokia finished lower by 0.6% to $21.02.