In spite of an exceptionally robust start for stock assets in the first two days of February, the bears were back at it by Wednesday, 2/3/10. Of the 10 major industry segments, only Consumer Discretionary (NYSEARCA:XLY) and SPDR Select Technology (NYSEARCA:XLK) had positive percentage returns.
Investors can thank Cisco (NASDAQ:CSCO). Quietly, slowly, shares of the world’s leading internet "networker" began to rise as the trading day progressed. And after hours, straight-shooting CEO John Chambers exclaimed that his company’s growth provided ”a clear indication that we are entering the second phase of the economic recovery.”
Will the endorsement translate into immediate tech ETF gains? Hmm, perhaps. Yet we’ve already seen Google (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), Intel (NASDAQ:INTC) and Amazon (NASDAQ:AMZN) rocket above expectations… only to find Mr. Market dismissing their results.
It’s fairly clear that stock assets continue to fret about a jobless recovery in the U.S., sovereign wealth debt troubles in Europe and credit tightening in China. Add to that list ongoing anxiety over taxation.
But at least for the day before Cisco announced its spectacular sales figures, buyers came to the tech table in force. And maybe, just maybe, the “Chambers Effect” might have some staying power.
|Tech ETFs: One Of Precious Few Bright Spots On Hump Day, 2/3/10|
|PowerShares Nasdaq QQQ (QQQQ)||0.55%|
|iShares DJ Technology (NYSEARCA:IYW)||0.37%|
|iShares S&P Technology (NYSEARCA:IGM)||0.30%|
|iShares GS Global Technology (NYSEARCA:IXN)||0.28%|
|SPDR Select Technology (XLK)||0.23%|
Disclosure Statement: Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. The company and/or its clients may hold positions in the ETFs, mutual funds and/or index funds mentioned above. The company does not receive compensation from any of the fund providers covered in this feature. Moreover, the commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities.