The Nasdaq's early gains reversed course on Tuesday, as investors returned to a more cautious mood. The index had recently fallen 3.5% to 1788. Shares of Intel ( INTC) slid 5.9% to $15.98 in anticipation of its earnings after the closing bell. Analysts expect Intel to earn 34 cents a share on sales of $10.3 billion, within the midpoint range of company guidance. Friedman Billings Ramsey trimmed its price target on the stock to $23 from $26, citing signs of weakening demand. Amazon ( AMZN) shares were down 10.1% to $55.44 after RBC Capital Markets cut its revenue estimate for the year by $1 billion. It also lowered its price target to $80 from $100. The firm maintains that Amazon is not immune from larger economic concerns that have been driving down consumer spending. Apple's ( AAPL) release of its new line of laptops did little to impress the Street. Its stock tumbled 3.5% to $106.45 after Chief Executive Steve Jobs showcased the new computers with their "multi-touch" track pad and speedier graphics chipset from Nvidia ( NVDA). Apple also cut by $100 the price of its cheapest computers, bringing it to $999. Shares of First Solar ( FSLR) jumped 3.9% to $149.6 after Friedman Billings Ramsey upgraded the stock to market perform from underperform, noting that the company should benefit from the ability of utilities companies to claim newly extended investment tax credits. Meanwhile, shares of JA Solar ( JASO) and Suntech ( STP) both fell after Thomas Weisel cut its ratings on each to market weight from overweight.
The firm sees potential issues related to tightening credit, and warns of the possibility of oversupply. Shares of JA Solar were down 17% to $6.36. Shares of Suntech were down 14% to $23.85.