This week, a steady stream of economic reports are on the menu, including
price data, such as the PPI and CPI, which could move the market given
investors' preoccupation with inflation and the pace of future interest rate
hikes. Also on tap will be earnings reports from a flurry of chip-related
companies such as Applied Materials and Marvell Technologies. Analysts seem
divided over the outlook for the chip sector in general. Talking to Dow Jones,
some market watchers note that chip firms supplying commodity markets stand to
lose the most, as companies in Asia continue to increase their ability to
supply the chip markets. They also caution that investors should be viewing
chips as any other cyclical market. In this regard, Turner Investment
Partners' Bob Turner tells the news service, "There are opportunities at
cyclical lows and that's where I believe we are now." Among chip sectors,
Daniel Morgan of Synovus Investment Advisors explains to Dow Jones that PCs
appear to be the healthiest area, as Microsoft's launch of a new operating
system, code named Longhorn, should drive growth of PCs and PC-related chips.
Further, chip results should improve, as the fourth quarter tends to be the
strongest seasonally for the sector. In other tech trends of note,
BusinessWeek reports that as tech companies are maturing, displaying steady
cash flows, predictable sales and sluggish growth, buyout firms are
increasingly looking at the sector after shying away from it in the past due
in part to volatility. Talking about maturity, investors are also increasingly
agreeing that the bull market is aging. It may not yet be time to head for the
butcher's shop, but Paul Desmond of Lowry's Reports tells The Wall Street
Journal that while "This bull market is going to last at least another four to
six months, ... it will be focused on the larger stocks."
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
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