Stocks Maintain Downward Drift

Meanwhile, Hewlett-Packard confirmed that it will acquire Electronic Data Systems (EDS Quote). H-P said it will pay $13.9 billion in cash, or $25 a share, nearly a billion higher than the top end of the range cited by news reports yesterday. H-P shares slid 6.6% as EDS -- which surged in the prior session -- climbed another 1.5% even though the stock was downgraded by at least three analysts.

Elsewhere in tech, Research In Motion's (RIMM Quote) price target was boosted by both Citigroup and Oppenheimer a day after the company unveiled its new BlackBerry Bold, a possible rival to Apple's (AAPL Quote) iPhone. Still, RIMM shares were stepping back 1.4%, in retreat from some of Monday's robust gains.

In other research calls, Oppenheimer cut its second-quarter, fiscal 2008 and fiscal 2009 earnings estimates on Goldman Sachs (GS Quote), Merrill Lynch (MER Quote), Lehman Brothers (LEH Quote) and Morgan Stanley (MS Quote), in part because of expected revenue reversals that will be required by a new accounting treatment. Shares of these names were losing between 0.7% and 3.2%.

Elsewhere, Liz Claiborne (LIZ Quote) shares moved up 1.1% after the clothing designer said adjusted earnings came to 28 cents a share in the first quarter, flying past the dime-a-share average Street target from Thomson Reuters. Including heavy restructuring costs, the company swung to a continuing-operations loss of 16 cents a share.

Also, after the prior close Sirius Satellite Radio (SIRI Quote) reported a top line that came in a hair below estimates even as its narowed loss matched expectations. Also, in the earnings call, CEO Mel Karmazin voiced frustration in with the time it has taken the Federal Communications Commission to review its proposed merger with XM Satellite Radio (XMSR Quote).