HP Stock Plunges on Profit Warning

Hewlett-Packard Co. stock tumbled after the company issued a last-minute warning that second-quarter earnings would fall significantly short of most forecasts. The computer maker, which has been hit this year by weak market conditions in Asia and severe price pressures in the PC business, said that “too many things” had continued to go wrong in April. Now the company is forecasting second-quarter earnings of about 65 cents per share, down from 75 cents a share in the second quarter last year, when net earnings totaled $784 million. Palo Alto-based HP will release earnings today. Hewlett-Packard’s stock was the most active issue and the biggest decliner on the NYSE, where it fell $11.31 to close at $70.31. . . . In a separate development, Xerox Corp. is suing Hewlett-Packard for patent infringement, claiming that it’s using Xerox technology in cartridges for color inkjet printers. The suit is the latest salvo in the companies’ efforts to invade each other’s markets.