Seagate (STX -2.3%) and Western Digital (WDC -2.1%) sell off following a downgrade to Equal...

|About: Seagate Technology (STX)|By:, SA News Editor

Seagate (STX -2.3%) and Western Digital (WDC -2.1%) sell off following a downgrade to Equal Weight from Barclays' Ben Reitzes, who sees soft PC demand hurting the companies' 2H results. Reitzes also claims notebook hard drive prices, boosted by capacity shortages, are falling faster than expected, and says his checks indicate hard drive production cuts and PC inventory tightening. Moreover, he expects Apple's rumored plans to sell a cheaper MacBook Air to hurt hard drive demand.