Cognizant Shares Rebound

SAN FRANCISCO -- Shares of tech services firm Cognizant (CTSH Quote) rebounded from a severe selloff on Tuesday that analysts called unwarranted.

Cognizant shares had recently gained $1.32, or 4.1%, to $33.32, in the wake of a pronounced stock market downturn. That gain helped restore some of Cognizant's market value after investors bolted on Tuesday, sending shares down more than 19%.

Concerns about the company's lower-than-expected fourth-quarter guidance sparked the selling. Cognizant said that the typical fourth-quarter "budget flush," or the flurry of spending, didn't materialize because of concerns regarding macroeconomic issues. Credit market turmoil and high oil prices are stoking fears that consumers will rein in spending and send the economy into a recession. ...