Technology Shares Plummet as Microsoft Speeds Up Tablet Delivery

Technology shares took a hit in late trading as Microsoft, the software giant, announced plans to speed up the delivery of Windows-based tablets by restricting its partners to just one computer manufacturer. The Dow Jones U.S. Technology Index plummeted 2.04% to 677.72, with Microsoft shares falling 2.4% to $24.41. Hewlett-Packard shares also declined as the company announced a partnership with Polycom to acquire its Visual Collaboration business, anticipating a slight earnings boost in Q3 2011. Meanwhile, Comtex SmarTrend Alerts had previously indicated downtrends for HPQ, MSFT, and PLCM.

Key Takeaways:

The Dow Jones U.S. Technology Index is down 2.04% to 677.72, with major technology stocks such as Microsoft (MSFT), Apple (AAPL), and IBM (IBM) experiencing a decline in late trading.
Microsoft shares fell 2.4% to $24.41 after the company announced plans to restrict its partners to just one computer manufacturer to speed up the delivery of Windows-based tablets.
Hewlett-Packard shares declined 1.82% to $36.70 as the company inked a definitive agreement with Polycom to acquire its Visual Collaboration business.
Polycom (PLCM) shares rose 0.03% to $57.43 after the acquisition announcement.
The transaction is expected to be slightly accretive to earnings upon closing, which is anticipated in Q3 2011, subject to regulatory approvals.
Comtex SmarTrend Alerts had previously indicated downtrends for HPQ, MSFT, and PLCM, with specific dates mentioned for each company: HPQ on 02-23-2011, MSFT on 05-17-2011, and PLCM on 05-17-2011.

Statistics:

2.04%: The decline of the Dow Jones U.S. Technology Index.
$24.41: The closing price of Microsoft shares after the company announced plans to speed up the delivery of Windows-based tablets.
2.4%: The decline in Microsoft shares.
1.82%: The decline in Hewlett-Packard shares.
$36.70: The closing price of Hewlett-Packard shares.
0.03%: The rise in Polycom shares.
$57.43: The closing price of Polycom shares.

Sources:

MidnightTrader.com via COMTEX (Boston, Jun 01, 2011) - Dow Jones U.S. Technology Index: (-2.04%), to 677.72.
Comtex SmarTrend Alert (As of Saturday, 05-28-2011 23:59) - DOWNTREND on 02-23-2011 for HPQ @ $43.15.
Comtex SmarTrend Alert (As of Saturday, 05-28-2011 23:59) - DOWNTREND on 05-17-2011 for MSFT @ $24.49.
Comtex SmarTrend Alert (As of Saturday, 05-28-2011 23:59) - DOWNTREND on 05-17-2011 for PLCM @ $54.61.