The Dow lost 105.60 points to 11,070.20. The Nasdaq was also off, dropping 15.93 points to 2,217.73.
First the bad news: Hewlett-Packard executives said the economic slump hitting North America and Europe has begun to spread to Asia and Latin America. CEO Carly Fiorina told analysts that HP has become "more cautious" about its outlook for revenue growth, which ranges from "flat" to down 5 percent for the current quarter. HP will take additional cost-cutting measures to try to meet analyst forecasts for earnings of 23 cents per share for the company's fiscal third quarter ending July 31, Fiorina said. The news sent shares down $1.34 to $28.71.
Electronics distributor Ingram Micro will let go as many as 1,000 people as part of a cost-cutting plan. The move is designed to save the Santa Ana, Calif., company $30 million to $40 million a year. Shares were down 9 cents to $13.49.
And now the good news: The worst may be over for Sun Microsystems, said Goldman Sachs analyst Laura Conigliaro. The analyst issued a research note following a meeting with Sun management. The company issued a profit warning last week. Sun was up 59 cents to $17.61.
Citrix Systems expects its second quarter to see a "modest acceleration" in growth, and now anticipates revenue to grow in the mid-20 percent range for the second quarter, compared with previous estimates of growth in the low-20 percent range. The company also said the acquisition of Sequoia Software is proceeding as planned. Shares were up $4.25 to $27.96.
Advanced Micro Devices projects that it will boost revenue this year, despite a slump in the overall semiconductor industry, as it expands its market share, Chief Operating Officer Hector Ruiz said Wednesday. Shares fell 53 cents to $28.37.
In other news, Idealabs' Bill Gross filed on Wednesday to sell 5 million shares of GoTo.com, a pay-for-placement search company backed by his reeling dot-com incubator. GoTo shares were down $2.86 to $23.78.
Priceline.com shares shot up nearly 30 percent, gaining $1.61 to $7.06, on news that company founder Jay Walker is selling his stake in the company for $110 million. Walker will sell 25 million shares, about 30 percent of the company, to Cheung Kong Holdings and Hutchison Whampoa, pending regulatory approval.
Lucent Technologies plans to offer early retirement packages to as many as 10,000 management employees as part of an effort to cut costs. Lucent were unchanged at $8.49.
Among leading volume movers, Cisco Systems dropped 78 cents to $20.76, Microsoft lost 24 cents to $72.36, Intel was up 9 cents to $29.82. and Oracle rose 24 cents to $17.
CNET Investor staff and Reuters contributed to this roundup.