Computer Software & Services Industry Under Pressure

Strategic Insights -

The Dow Jones Industrial Average is trading up 35 points (0.2%) at 17,119 as of Monday, October 12, 2015, 12:55 PM ET, with the NYSE advances/declines ratio at 1,447 issues advancing vs. 1,507 declining with 153 unchanged. The Computer Software & Services industry, however, is down 0.4% versus the S&P 500, which is up 1.8%. Stocks within this industry, such as Thomson Reuters, are seeing gains, while others, like Infosys, VMware, and Microsoft, are experiencing declines.

Key Takeaways:

  • Infosys is down $1.30 (-6.8%) to $17.85 on heavy volume, with 7.2 million shares exchanged hands as compared to its average daily volume of 4.4 million shares.
  • VMware is down $8.65 (-11.0%) to $70.00 on heavy volume, with 10.7 million shares exchanged hands as compared to its average daily volume of 1.8 million shares.
  • Microsoft is down $0.31 (-0.7%) to $46.80 on light volume, with 8.6 million shares exchanged hands as compared to its average daily volume of 34.3 million shares.
  • The Computer Software & Services industry is down 0.4% versus the S&P 500, which is up 1.8%.
  • Thomson Reuters is up 1.1%, a company within the industry that saw an increase today.
  • TheStreet Ratings rates Infosys as a buy, citing the company's strengths in revenue growth, solid financial position, and reasonable valuation levels.
  • TheStreet Ratings rates VMWare as a hold, citing the company's revenue growth and reasonable valuation levels, but also weaknesses in its stock itself, return on equity, and operating cash flow.
  • TheStreet Ratings rates Microsoft as a buy, citing the company's reasonable valuation levels, expanding profit margins, and notable return on equity.

Statistics:

  • The Dow Jones Industrial Average is up 35 points (0.2%) at 17,119.
  • The NYSE advances/declines ratio is at 1,447 issues advancing vs. 1,507 declining with 153 unchanged.
  • The Computer Software & Services industry is down 0.4% versus the S&P 500.
  • Infosys has a market cap of $43.8 billion and is part of the technology sector.
  • VMware has a market cap of $9.4 billion and is part of the technology sector.
  • Microsoft has a market cap of $379.5 billion and is part of the technology sector.
  • 7.2 million shares of Infosys were exchanged hands as compared to its average daily volume of 4.4 million shares.
  • 10.7 million shares of VMWare were exchanged hands as compared to its average daily volume of 1.8 million shares.
  • 8.6 million shares of Microsoft were exchanged hands as compared to its average daily volume of 34.3 million shares.

Sources:

  • TheStreet
  • Thomson Reuters
  • VMware
  • Microsoft
  • Infosys
  • iShares S&P NA Tech Software Idx (IGV)
  • ProShares Ultra Short Technology (REW)