Stocks are giving back some of yesterday's rich gains this morning, with the Dow Jones Industrial Average (DJINDICES:^DJI) and the broader S&P 500 (SNPINDEX:^GSPC) down 0.37% and 0.26%, respectively, as of 10:10 a.m. EST.

The micro view
On Sunday, I wrote of Dow component Hewlett-Packard (NYSE:HPQ) that while it "has beaten expectations at least four times consecutively prior to [today's] earnings report ... the company has otherwise systematically crushed investors' hopes and dreams for some time now." Today, HP keeps the investor nightmare alive by simultaneously missing expectations and announcing an $8.8 billion charge on its $10.3 billion acquisition of U.K. software company Autonomy due to accounting fraud by the latter prior to its acquisition.

If fraud took place, that is something HP should pursue vigorously. However, investors should keep their eye on the ball: The acquisition of Autonomy was probably ill-advised, regardless of any current allegations of accounting fraud -- and it was certainly overpriced. Note that while $5 billion of the Autonomy-related charge is due to accounting practices, that still leaves roughly a $3.8 billion charge that has nothing to do with the alleged fraud -- more than one-third of the acquisition price.

The Autonomy deal smacked of desperation, a situation in which a chief executive sought to paper over decline and mismanagement of core activities by buying growth or pursuing "transformational" acquisitions. Thankfully for CEO Meg Whitman, that chief executive happened to be her predecessor, who announced the deal roughly a month before he was jettisoned.

What's next for HP investors? Today, they're down another 12.6% as of 10:15 a.m. EST. At this stage, one should only consider owning or buying these shares as an outright speculation. If you want to own a tech stalwart that is turning things around, you're better off looking at Cisco Systems (NASDAQ:CSCO), for example. Click here to receive our premium report on the shares, which includes 12 months of ongoing coverage.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.