Shares in the chip sector continue to drop following a negative analyst report, dragging the tech-heavy Nasdaq down with them.
The Nasdaq composite index lost 6.47 points to 2,027.79, unable to sustain its brief midday rebound following morning losses. The Dow Jones industrial average gained 57.43 points to 10,458.74.
Chip and chip-equipment makers saw their stocks slide following disappointing news from a Credit Suisse First Boston report. The investment firm lowered its ratings on a slew of semiconductor stocks and dropped estimates for PC unit shipments for this year and next year, citing poor fundamentals and lofty stock prices.
KLA Tencor was one of the hardest hit, down $3.38, or 5.83 percent, to $54.57. CNET's Semiconductor Capital Equipment index was down about 3 percent, and CNET's Semiconductor index was off around 1 percent.