Sanmina (SANM - Get Report) was down 6.6% in midafternoon after the electronics manufacturing services sector was hit by negative comments from Merrill Lynch analyst Jerry Labowitz.

Citing channel checks and second-quarter sluggishness, Labowitz said it will be "difficult to achieve even our conservative numbers for the September and December quarters."

Labowitz downgraded five companies to intermediate-term neutral from buy, including Sanmina, C-Mac Industries Celestica ( CLS), Jabil Circuit ( JBL) and Solectron . Flextronics ( FLEX) and Plexus ( PLXS) were downgraded from intermediate-term neutral from accumulate.

All these stocks were struggling, with C-Mac down 8.3%, Celestica down 5.9%, JBL down 9.5%, Solectron down 8.4%, Flextronics down 7.1% and Plexus down 5.6%.