EmailThe tech sector is trading lower today, trailing gains in the broader market. Semiconductors are showing slight relative strength with the SOX trading 0.2% higher. Within the chip index, CREE (+12.3%) is a notable standout. Among other major indices, the SPY is trading 0.4% higher today, while the QQQ is roughly flat and the NASDAQ is trading 0.1% lower on the session. Among tech bellwethers, T (+1.1%) and VZ (+1.1%) are rebounding off of recent losses, while IBM (-4.3%) and INTC (-2.6%) are showing notable weakness following earnings. In tech earnings last night, INTC (-2.6%) reported Q3 results that topped the company's earlier downside preannouncement and IBM (-4.3%) posted a slight Q3 EPS beat, although sales missed the mark once again. Elsewhere, MANH (+6.0%) posted a beat and raise, while FTNT (-17.9%) reported an inline qtr and LLTC (-0.2%) posted a mixed Q1 and guided lower. This morning, ASML (-3.8%) reported a mixed Q3 and guided to the lower end of its previous estimate, APH (+2.3%) posted a modest beat and issued guidance above consensus and CHKP (-12.9%) posted a slight Q3 beat. In news, ASML (-3.8%) announced it will acquire CYMI (+57.3%) for EUR1.95 bln. Among rumors, AAPL (-0.3%) may put its iPad Mini on sale Nov. 2.
In notable analyst upgrades this morning in the tech space, Wunderlich upgraded FTNT (-17.9%) to Buy and Argus upgraded S (+1.2%) to Buy. Among downgrades, AMT (-0.1%) was downgraded to Equal Weight at Barclays, DBD (-0.9%) was downgraded to Underweight at JP Morgan, IBM (-4.3%) was downgraded at Janney and Societe Generale, ADTN (+3.7%) was upgraded from Sell at Goldman, and Cantor downgraded CSCO (-0.9%) to Hold. LRCX (+0.2%), MLNX (-1.7%) and XLNX (+1.2%) are the notable names in tech scheduled to report quarterly results today after the close.
