SAN FRANCISCO (MarketWatch) — Technology stocks took it on the chin Tuesday, joining in a broad market retreat, with shares of Teradata falling sharply on a weak business outlook and the budget impasses continuing in Washington, D.C.
Teradata (TDC) shares sank more than 18%, to close at $42.91, a day after the company cut its full-year adjusted earnings outlook to $2.70 to $2.80 a share. Wall Street analysts had forecast Teradata to earn $2.85 a share.
Teradata was the top decliner on the S&P 500, which fell 0.7%. The Nasdaq Composite Index (COMP) shed 21 points, or 0.6%, to close at 3,794, as the Dow Jones Industrial Average gave up 133 points.
Facebook (FB) gave up its mild gains to shed a penny a share and close at $49.50.
Bloomberg 
Enlarge Image Mark Zuckerberg. Evercore Partners analyst Ken Sena raised his price target to $60 from $45, citing "massive pricing momentum" and signs of a strengthening online ad business.
"We see better targeting by Facebook as driving additional pricing appreciation over several years for Facebook," Sena told clients in a note.
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Shares of Demand Media (DMD) shed almost 9% after the company announced that Chief Executive Richard Rosenblatt was stepping down.
The government shutdown continued to be a key concern among investors and analysts.
In a note, ISI Group analyst Brian Marshall pointed to NetApp Inc. and VMware Inc. as two tech players with sizable exposures to U.S. federal spending, noting how both stocks have declined since the shutdown began.
"In our view, this underperformance during the shutdown is an overreaction," he wrote, arguing that NetApp, VMware and Cisco Systems "are already entrenched in federal programs."
NetApp (NTAP) shares ended the day down 2.5% in Tuesday, while VMware (VMW) was off almost 3% and Cisco (CSCO) gave up 0.7%
Microsoft Corp. (MSFT) eked out a gain of 4 cents a share, to close at $34.49, and Apple Inc. (AAPL) shares rose $2.64, to $498.68 on news that the iPhone maker has hired Angela Ahrendts to lead the company's retail division.
The Morgan Stanley High Tech 35 Index (MSH) and the Philadelphia Semiconductor Index (SOX) both closed in the red.
Shares of Yahoo Inc. (YHOO) fell almost 2% ahead of the company's earnings report due after the market closes. Intel Corp. (INTC) which was also scheduled to report results Tuesday, fell by 6 cents a share to close at $23.39.
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