MIDDAY MARKETS: Apple eats into techs

Rotten Apple news ate into techs at midday Wednesday, worming its way into PC and chip stocks. The Nasdaq lost 7.15 to 2,882.65 and the Dow Jones industrial average dropped 117.93 to 10,780.79.

The Inter@ctive Week @Net Index rose 4 to 332.45.

Apple (Nasdaq: APPL) fell 14 percent Wednesday, after it warned for the second time in less than three months that revenues and earnings would fall short of consensus expections. Analysts lowered their estimates for the stock, and said they saw few near-term catalysts for improvement. Dell (Nasdaq: DELL), dropped 2.19 to 18.06, Compaq (NYSE: CPQ) fell 3.47 to 20.93 and Intel (Nasdaq: INTC) shed 2.97 to 33.03,

Shares of Integrated Silicon Solutions (Nasdaq: ISSI) rallied 2.56 to 11.88 after it upped its revenue guidance.

Internet network Terra Lycos (Nasdaq: TRLY), down 0.69 to 15.19, and Headhunter.net (Nasdaq: HHNT), down 0.13 to 7, said Wednesday that they have agreed to integrate the online recruiter's content into the sites of the Lycos network.

Juniper Networks, Inc. (Nasdaq: JNPR) dipped 6.56 to 149.44 on news that Ericsson (Nasdaq: ERICY), up 0.06 to 13.69, has sold about 10.4 million shares of its holdings in the company. The companies called the move a first step in their joint venture for the buildout of wireless infrastructure.

Motorola, Inc. (NYSE: MOT), down 0.5 to 18.5 and Celestica, Inc. (NYSE: CLS), up 4.5 to 64.13, announced a $1 billion outsourcing agreement Wednesday that will cut 2,870 jobs at Motorola.

Cisco (Nasdaq: CSCO), up 1.19 to 53.31 continued yesterday's gains, while Oracle (Nasdaq: ORCL), down 0.5 to 31 and Microsoft (Nasdaq: MSFT), down 1.75 to 58.13 fell from their highs.

Amazon (Nasdaq: AMZN) was down 0.56 to 24.81, AOL (NYSE: AOL) rose 0.97 to 45.05 and Yahoo! (Nasdaq: YHOO)fell 3.94 to 39.95.