lost 3.5% in early trading after
Sanford C. Bernstein
cut the company and
to market perform from market outperform. Nortel was down 1.1%. Analyst Paul Sagawa said he expects a "sharp deceleration" in telecom equipment spending.
reiterated its buy on both companies, but the Bernstein downgrade hurt other network and optical stocks.
was down 1.2% and
was down 3%.
Bargain-hunters, however, pushed
up 7.6% after a recent slide that knocked its market cap below $100 billion for the first time in almost two years.