EmailThe tech sector is trading higher today, ahead of gains in the broader market. Semiconductors are showing relative strength with the SOX trading 0.4% higher. Within the chip index, STM (+3.6%) is a notable standout. Among other major indices, the SPY is trading 0.1% higher today, while the QQQ is up 0.4% and the NASDAQ is trading 0.2% higher on the session. Among tech bellwethers, CSCO (+7.8%) is leading the pack, while FB (-6.8%) is once again showing notable weakness.
In tech earnings last night, CSCO (+7.8%) reported a quarterly beat, offered inline guidance and raised its dividend. Elsewhere, A (-7.9%) posted a miss and issued downside guidance, while AMAT (-0.3%) and SINA (+12.3%) reported quarterly beats and offered tepid guidance and CACI (-5.8%) posted a mixed quarter and reaffirmed guidance. In news, FB's (-6.8%) initial IPO lock up period expired today. Among rumors, EA (+7.0%) is being discussed as a potential private equity target according to reports. Among notable analyst upgrades this morning in the tech space, SINA (+12.3%) was upgraded to Buy at BofA/Merrill. In downgrades, Oppenheimer downgraded CVG (-2.3%) to Perform, AMAT (-0.3%) was downgraded at several firms following earnings, SBAC (-2.3%) was downgraded to Neutral from Buy at Citigroup, and Needham downgraded FSII (+0.1%) to Hold. AVGO (+1.2%), BRCD (+2.6%), and MRVL (+0.7%) are the notable names in tech scheduled to report quarterly results today after the close.
