Telecoms and tech stocks take hit

Jul 22 - Sector weakness and signs of sluggish profitablity weighed on Ericsson shares despite better-than-expected second-quarter earnings.

Ericsson, the world's No. 1 mobile network maker, beat forecasts for the second consecutive quarter with earnings before interest and tax of 4.7 billion Swedish crowns ($789 million) excluding restructuring costs.

Forecasts were for 4.3 billion. But the firm, which earlier this year announced a plan to chop 4 billion crowns off annual costs, said restructuring costs in the second quarter came in at 1.8 billion crowns. That was nearly four times the expected amount of 502 million.

Reuters Technology Correspondent Matt Cowan reports.