Tech stocks slipped on Wednesday, after a late-session selloff prevented the overall market from reversing its down momentum. Stocks whip-sawed during the session, as investors digested the Federal Reserve's move to authorize an emergency reduction in fed funds rate, a step that was also taken by the European Central Bank as well as lenders in Britain, Canada, Sweden and Switzerland. The Nasdaq was down 15 points, or 0.83%, to close at 1740. Shares of Research In Motion ( RIMM) swelled by 4.6% to $57.60 after it announced plans to launch a new touch-screen smartphone called the Storm. Up until now, the Blackberry maker had equipped its devices with physical keypads. The touch-screen mimics Apple's ( AAPL) design for its popular iPhone. The Storm is expected to hit stores in time for the holidays. Synaptics ( SYNA) will build the interface for the Storm. That helped boost the company's shares, which were up 10.1% to $23.76 on Wednesday. Yahoo! ( YHOO) shares tumbled to a five-year low, exacerbated by analyst warnings that a softening display advertising market could hurt the company. The Internet giant's stock fell 5.6% to $13.76. eBay ( EBAY) shares gained ground after taking a beating the last two days. American Technology Research upgraded the stock to neutral from sell, helping to lift shares 3.1% to $17.01. Shares had been on the decline after eBay announced a 10% reduction in its workforce and revised its revenue guidance to the lower end of its estimates. Shares of BMC Software ( BMC) were up 4.1% to $25.40 after J.P. Morgan upgraded the stock to neutral from underweight. The firm noted that its mainframe database tools business is experiencing a stable pricing environment.
Shares of Citrix ( CTXS) were also up 5.3% to $20.58 after J.P. Morgan raised its rating to overweight from neutral based on the company's valuation and low market expectations. AT&T ( T) shares were down 2.4% to $24.73 after RBC Capital downgraded the stock to sector perform from outperform. Banc of America also cut estimates for the company as a result of a more conservative economic outlook.