Computer hardware stocks are moving notably lower during trading on Thursday after smartphone maker Palm Inc. (PALM) cut its quarterly and yearly guidance.
The weakness in the hardware sector is reflected by the 2.6 percent loss currently being shown by the NYSE Arca Computer Hardware Index. The index is moving lower for a fifth straight session and hit a nearly one-month intraday low in earlier dealing.
Within the sector, shares of Palm are currently down 14.4 percent, falling to their lowest price in just under a year.
The loss by Palm comes as the company indicated that it now expects revenues for the third quarter to range between $285 million and $310 million, well short of the $424.69 million forecast on Wall Street.
The firm also said it now expects its fiscal year 2010 revenues to be well below its previously forecast range of $1.6 billion to $1.8 billion.
Palm said its revenues are being negatively impacted by slower than expected consumer adoption of its products that has resulted in lower than expected order volumes from carriers and the deferral of orders to future periods.
Dell Inc. (DELL) is one of the sector's other notable laggards, falling by 1.6 percent. The stock remains rangebound despite the day's retreat.
Western Digital Corp. (WDC), Apple (AAPL) and IBM Corp. (IBM) are also moving lower, although they largely remain rangebound. Notably, Western Digital dipped to its lowest intraday price in nearly three months in earlier dealing.
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