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Computer industry

Tech Stocks Take a Breather After Impressive Run

Strategic Insights

— 1 min read

Tech stocks in the US took a break from their recent climb, with the Nasdaq Composite Index easing by about 8 points to 2,148.09 early Monday. The index had ended the previous week at a fresh high for the year, driven by positive US economic data and strong quarterly results from tech giants like Apple and Advanced Micro Devices. Despite this, the tech-heavyweights like Dell, Cisco, and Microsoft slipped lower. The health of the technology-services sector will be monitored closely, particularly after International Business Machines Corp. (IBM) reports its second-quarter results, which are expected to be lower than last year's earnings.

Key Takeaways:

  • The Nasdaq Composite Index eased by about 8 points to 2,148.09 early Monday, after reaching a fresh high for the year the previous week.
  • The Amex Computer Technology Index dipped about 4 points early Monday, with leading tech stocks like Dell, Cisco, and Microsoft falling.
  • International Business Machines Corp. (IBM) is set to report its second-quarter results, with analysts projecting earnings of $1.03 a share on $21.9 billion in revenue.
  • These estimates are below last year's earnings of $1.16 a share on revenue of $23.2 billion.
  • The Philadelphia Semiconductor Index lost 4 points, with top decliners including Intel and Freescale Semiconductor Inc.
  • Chip-equipment maker KLA-Tencor Corp. fell 91 cents to $41.56, after being downgraded by First Albany to underperform from neutral.

Statistics:

  • The Nasdaq Composite Index ended the previous week at 2,156.17, a fresh high for the year.
  • The index has finished higher in each of the past seven sessions.
  • The Amex Computer Technology Index dipped about 4 points early Monday to 2,242.
  • Analysts project IBM to earn $1.03 a share on $21.9 billion in revenue.
  • Last year, IBM earned $1.16 a share on revenue of $23.2 billion.

Sources:

  • Dow Jones Commodities News Select via Comtex
  • Thomson First Call
  • First Albany
  • COMTEX (http://www.comtexnews.com)
  • Dow Jones Newswires 07-18-05 1132ET
  • Copyright (c) 2005 Dow Jones & Company, Inc. News Provided by COMTEX

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