By Benjamin Pimentel
The tech sector sank deeper Wednesday as shares of Advanced
Micro Devices fell at the opening bell on reports that its former
chief executive may have played a role in the Galleon
insider-trading case.
But the sector did get a boost from Unisys Corp. (UIS), shares
of which soared more than 11% after the computer-services company
swung to a third-quarter profit.
AMD (AMD) shares were down more than 5% following a Wall Street
Journal report linking Hector Ruiz, the company's former CEO, to
the insider-trading controversy at Galleon.
"We are investigating the situation, but we don't have any more
detail to discuss publicly," AMD spokesman Michael Silverman said.
"No current or former AMD employee has been charged with a crime
and we're not aware of any allegation of criminal misconduct. It
would be inappropriate to comment further on an ongoing Department
of Justice investigation."
AMD set the pace for a broad-based retreat, as the Nasdaq
Composite Index (RIXF) fell 1.25% to 2,090. The Morgan Stanley High
Tech 35 Index (MSH) was down 0.8%, while the Philadelphia
Semiconductor Index (SOX) lost 1.2%.
Other major tech players were in the red, including, Dell Inc.
(DELL), Oracle Corp. (ORCL) and Yahoo Inc. (YHOO).
Gains came from eBay Inc. (EBAY) and Texas Instruments
(TXN).
