Technology shares gained ground last week, ending the month roughly 5%
higher, one of the top sectors in October. Internet and semiconductor shares
led the industry, with gains of around 8%, followed closely by software
issues, adding about 5%. Hardware equipment and computer stocks trailed the
group, with gains of approximately 3%, which is not surprising given reports
that consumers have tightened their purse-strings for big-ticket items.
Looking ahead, Loomis Sayles & Co.'s Richard Skaggs tells Dow Jones he is
bullish on Internet-related stocks such as Google and eBay, despite recent
price appreciation in select sector names. Skaggs cites recognizable brand
names, the fact that search engines are "one of the fastest growing industries
in the world" and a willingness to give a chance to management with their
execution plans. Meanwhile, Michael Mahoney, a senior manager of EGM Capital's
Communications and Technology fund, is upbeat about stocks related to the
wireless segment of communications, including some telecom gear firms.
Overall, his fund is now holding a net long position of 45%, which "is quite
bullish for us," versus the 21% net long position held earlier in the year.
Talking to Dow Jones, he further comments, "This year has been kind of
difficult. Stocks are not reacting based on fundamentals, and there's been
volatility caused by short-term mood swings or concerns about macro issues
like Iraq and the elections." One such distraction will take center stage this
week, with the holding of the elections on Tuesday. Investors will likely hold
their breath for the result, which has been too close to call so far, and for
any uncertainty as seen in the last election. However, fundamental issues
could also be at the fore of investors' minds this week, with the release of
key data such as payrolls, consumer spending and the ISM indices.
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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