IBM, Apple and Research In Motion ticked lower in premarket trading on Wednesday, continuing the prior day's tech sector sluggishness.
NEW YORK (TheStreet) -- IBM(:IBM) Apple(:AAPL) and Research In Motion(:RIMM) ticked lower in premarket trading on Wednesday, continuing the prior day's tech sector sluggishness.
Shares of hardware and software giant IBM were down $3, or 1.43%, to $206.50 after Bank of America Merrill Lynch downgraded the company to neutral from buy, citing limited valuation and near-term upside. The bank, however, raised IBM's price target to $215 from $205. IBM's shares had hit a new all-time high on Tuesday. IBM shares were down in pre-market trading on Wednesday.
Research In Motion's stock was down 31 cents, or 2.38%, to $12.70 in premarket trading, with investors still nervous about the embattled handset maker. RIM's shares plunged more than 9% on Tuesday after media reports said the company has been slammed with a patent lawsuit by Dutch firm NXP Semiconductors(:NXPI).
Apple shares, which hit a new all-time high on Tuesday, also traded down with the rest of the tech sector, dipping $6.04, or 0.96%, to $623.28.
Cisco was another laggard, dipping 18 cents, or 0.86%, to $20.64 in premarket trading. The networking giant's stock slipped 1.37% on Tuesday after CEO John Chambers warned that public sector spending will remain weak. Speaking at a Wells Fargo event, the Cisco chief said that public sector spending will "get tougher before it gets better,"according to a CNBC news report.
SanDisk(:SNDK), however, was one of tech's big pre-market losers, plunging $4.05, or 8.09%, to $46 as investors responded to the company's weak outlook. On Tuesday, the Flash memory specialist cut its first-quarter revenue forecast, citing weaker-than-expected pricing and demand.
The Nasdaq closed down 0.2% on Tuesday as the Federal Reserve downplayed the chances for more quantitative easing.
--Written by James Rogers in New York.
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