Compaq Down 7.7% on Salomon Report of Growing Inventory at PC Makers

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Compaq

(CPQ)

was down 7.7% in early afternoon after a

Salomon Smith Barney

report said Thanksgiving weekend PC sales appeared light. The report said inventories are building at most PC makers, and it singled out Compaq, noting that the company appeared to have relatively high inventories. Compaq this afternoon responded that it is comfortable with its inventory levels and said it expects supply constraints to ease this quarter. Other PC makers were off sharply as well. The

Box Maker Index

(BMX)

was down 2.1%.