Tech Winners & Losers: Level 3

SAN FRANCISCO -- The Nasdaq led the major indices higher Tuesday, as investors reacted to a mix of economic reports. The market initially perked up on a Commerce Department report of an unexpected rise in home sales for April -- the first increase in six months. But the Case-Shiller Home Price Index showed a 14.1% year-over-year drop during the first quarter.

Level 3 Communications(LVLT Quote - Cramer on LVLT - Stock Picks) was down 19 cents, or 5.4%, to $3.30, after Standard & Poor's reduced its rating to sell. The stock gave back half of an 11% gain it made on an analyst upgrade Thursday, when it closed at $3.50.

German chipmaker Infineon Technology(IFX Quote - Cramer on IFX - Stock Picks) fell 45 cents, or 4.5%, to $9.53 on news that CEO Wolfgang Ziebart had stepped down Monday. The departure is spurring talk of a merger with NXP Semiconductors.

Palm(PALM Quote - Cramer on PALM - Stock Picks) was up 13 cents, or 2.3%, to $5.77, despite a reported downgrade to sell by S&P.

Marvell Technology(MRVL Quote - Cramer on MRVL - Stock Picks) fell 42 cents, or 2.9%, to $14.02 on a ratings cut to neutral by Goldman Sachs.

China Mobile(CHL Quote - Cramer on CHL - Stock Picks) was down $4.76, or 6.1%, to $73.58 on news that China is shaking up its telecom sector. The Wall Street Journal reported that China will merge six state-owned telecoms into three carriers offering wireless and fixed-line service. The move is expected to create at least two strong competitors to China Mobile.

Other notable tech movers: On-demand software provider NetSuite(N Quote - Cramer on N - Stock Picks) was up $1.40, or 7.3%, to $20.71, and Apple(AAPL Quote - Cramer on AAPL - Stock Picks) advanced $3.69, or 2%, to $184.86.