Computer hardware stocks are seeing considerable weakness during trading on Tuesday, with Seagate Technology (STX) leading the sector lower after announcing that it has terminated discussions with private equity firms regarding a going private transaction.
The weakness among computer hardware stocks is reflected by the 1.5 percent loss currently being shown by the NYSE Arca Computer Hardware Index. Despite the loss, the index remains well off the one-month intraday low it set two weeks ago.
Seagate Technology is turning in one of the sector's worst performances, with the hard disk drive maker currently down by 2.9 percent. At its low for the session, Seagate was at its worst intraday level in well over a month.
The loss by Seagate comes after the company ended the going private talks, saying that the indications of the valuation range were not in the best interest of the company and its shareholders.
The company also said that its board has authorized the repurchase up to an additional $2 billion worth of its outstanding ordinary shares. Seagate said the repurchase authorization reflects its continued commitment to enhancing shareholder value.
Shares of Dell (DELL) have also come under pressure on the day, falling by 2.7 percent. With the loss, the computer maker hits its worst intraday level in almost two months earlier in the session.
Lexmark (LXK), Apple (AAPL), and NetApp (NTAP) are also posting notable losses, contributing to the weakness in the sector.
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