Last week, investors took a bit of a break from tech issues, as the market
decided how to react to the mostly stronger tech earnings. "A lot of people
figure the good earnings news has already been discounted . . . So when
companies come through with good or slightly better-than-expected news and
deliver what's anticipated, there's no reason why prices should go higher,"
said Paul Cherney, chief real-time market analyst at S&P Marketscope, to
Reuters News. A variety of industries within the technology sector were in the
earnings spotlight. Within the communications equipment space, Lucent posted
better-than-expected quarter results, but some investors were disappointed it
didn't raise its 2004 revenue outlook. Motorola met a similar fate, as
weakness at its handset unit caused some concern. Still, robust demand for
mobile phones and networks and a promising current-quarter sales outlook sent
Nokia higher. Elsewhere, Tellabs' shares plunged, as its quarterly revenue
declined. Software titan Microsoft posted better-than-expected earnings;
however, its profit declined. Also, Siebel Systems and Mercury Interactive
fell on their quarterly reports. In the chip space, Xilinx rose after it swung
to a profit, but Advanced Micro Devices slid despite its robust quarterly
results. RF Micro Devices dipped on a downbeat fourth-quarter earnings
outlook. Last week's pull back was only slight, and some market watchers
believe it was only natural given the recent surge in tech issues. "Investors
are moving from tech and some Nasdaq issues that look like they may have
gotten ahead of themselves in the short run, and into larger-cap financial and
cyclical names," Robert Mikkelsen, senior managing director of equity capital
markets at The Advest Group, said to Reuters News. "But it seems like an
orderly rotation rather than a big overall correction, which is healthier and
shows the strength of this market."
High-Tech Monday Update is provided courtesy of Thomson Financial. This
information is believed to be true and accurate; we take no responsibility for
inaccurate information and reserve the right to update our reports. For more
information, please visit our web site at http://www.thomson.com/financial.
SOURCE Thomson Financial Corporate Group
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