Tech stocks swung back into negative territory on Monday, offsetting gains from last week's rally when the federal government proposed a huge bailout of troubled banks and the Securities and Exchange Commission placed a temporary ban on short-selling.
The Nasdaq was down 2.6% to 2214 in afternoon trading.
came out a winner despite the turmoil, with the stock jumping 2.9% to $25.88 after the company announced a
that will run through Sept. 30, 2013.
The new plan comes as Microsoft completes a previous $40 billion program. The software giant's board also increased its quarterly dividend to 13 cents a share from 11 cents.
The stock got an additional bump after Standard & Poor's and Moody's Investors Service issued favorable debt ratings for the software giant.
Moody's assigned a senior unsecured debt rating of AAA and a short term rating for commercial paper of Prime-1 to Microsoft, while S&P assigned a AAA corporate credit rating and a short term rating for commercial paper of A-1+.
shares tumbled 8.4% to $19.35 after Wachovia downgraded it to market perform from outperform. The firm noted that the company's revenue growth is slowing and it may not reach its 16% operating margin as soon as expected.
also dipped on Monday after Merrill Lynch resumed coverage on the company, rating it underperform and estimating a price target of $36. The firm pointed to continuing pressure on price and margins, and delays on its Nuvi smartphone.
The stock was down 5.5% to $35.85.
shares were soaring after
agreed to buy the network security company in a deal worth $465 million.
McAfee is offering $5.75 a share, or $413 million, which represents a 27% premium over Secure's closing stock price on Friday. McAfee will also redeem the company's preferred stocks for cash, valued at $84 million.
Secure's shares climbed 23.2% to $5.57 while McAfee's shares shed 2.6% to $36.33.
saw its shares slide 11.1% to $18.42 after Cowen chopped its rating to neutral from outperform.
The firm says the stock is fully valued at its current levels and sees no near-term fundamental catalysts as the maker of software and systems for car dealers heads into a seasonally slow period.