Applied Materials tumbled after the chipmaker said it expects third-quarter earnings to be in the lower half of its previous outlook. The company also cut its fiscal 2012 sales outlook on weaker-than-expected demand.
This comes a day after AMD cut its sales outlook, hurt by disappointing sales in China and Europe. In addition, at least eight brokerages lowered their price target on the company.
Other chipmakers including Micron and Sandisk also declined.
Intel will be acquiring a 15 percent stakein microchip maker ASML for $4 billion and fund the Dutch company's research into next-generation chipmaking technology.
Research In Motion shareholders re-elected the company's board of directors at its annual meeting. The embattled BlackBerry maker is down almost 50 percent year-to-date.
Google is close to paying $22.5 million to settle charges that it bypassed the privacy settings of customers using Apple's Safari browser, according to reports. Meanwhile, BMO raised its price target on the iPad maker to $700 from $695.
Coca-Cola announced a two-for-one stock splitfor the first time in 16 years. The move will increase the number of shares to 11.2 billion for the beverage giant.
Comcast's A&E Television Networks agreed to redeem its 15.8 percent stake in NBC Universal for $3.025 billion. Comcast is the majority owner of NBCUniversal.
United Technologies announced that its Sikorsky Aircraft unit had signed a five-year, $8.5 billion contract to build 653 H-60 Black Hawk and Seahawk helicopters for the U.S. Army and Navy. Meanwhile, Nomura cut its price target on the firm to $95 from $90.
Mako Surgical plunged almost 40 percent after the company posted lower-than-expected sales of its surgical robot for the second quarter in a row and cut its revenue forecast for the full year.
On the economic front, small business optimism dropped sharply in Junefor the second-straight month, according to the National Federation of Independent Business, with businesses downbeat on sales, profits and hiring.
Treasury prices held small lossesafter the government auctioned $32 billion in 3-year notes at a high yield of 0.366 percent and bid-to-cover of 3.52.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter:
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WEDNESDAY: Weekly mortgage apps, international trade, wholesale trade, oil inventories, 10-yr note auction, FOMC minutes; Earnings from Marriott, Chevron interim results
THURSDAY: Jobless claims, import & export prices, Fed Pres Williams speaks, 30-yr bond auction, Treasury budget, Facebook hearing; Earnings from Fastenal
FRIDAY: PPI, consumer sentiment, Fed pres Lockhart speaks, Dell shareholders mtg; Earnings from JPMorgan, Wells Fargo
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