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The tech sector remained bearish for the third consecutive day as many technology stocks recorded huge losses on their share prices. Apple (AAPL), Microsoft (MSFT), Intel (INTC), Qualcomm (QCOM) and Oracle (ORCL) all were down more than 2%. Facebook (FB) fell 6.35%, eliminating its entire gain on Thursday, which means the stock is now down a total of 13.10% for the week. The sector was down 2.91% at the end of the day, and is now down 2.93% for the week. It was one of the worst performing areas of the market, second only to consumer cyclicals.

A weak jobs report triggered a free-for-all in the markets. The Dow Jones was down 274 points, eliminating the gains it had made since the start of 2012. The Nasdaq and the S&P 500 fared worse, falling farther than the Dow percentage wise. The S&P 500 lost 2.46%, while the Nasdaq was pulled even further down by the poorly performing tech stocks, finishing 2.82% down at the close.

The technology sector has fluctuated from bullish to bearish and back again over the last few weeks, however, overall the sector has generally been very bearish as it is now down 11.47% in the past month. This is 2.39% more than the S&P 500. Therefore, the tech sector might not be the place to look for investment over the short term.

Nonetheless, the best investments are made in a depressed market. You should buy when there's blood in the street, forgive the cliche. Consequently, there are some bargain deals in the current market. Nokia (NOK) is particularly impressive with a price/sales ratio of just 0.20. Zagg (ZAGG) is also attractive as the price/sales ratio is just 1.73 which is very low for a fast growing attractive small cap stock. It is also a cyclical stock which seems to have bottomed out in its cycle so it should rise soon.

Top Gainers

  • ParkerVision (PRKR) up 16.40%
  • Canadian Solar (CSIQ) up 5.12%
  • ReneSola (SOL) up 4.10%
  • GSI Technology (GSIT) up 3.17%
  • Yingli Green Energy Hold. Co. (YGE) up 3.08%

Top Losers

  • Synacor (SYNC) down 18.71%, 3.26% after hours
  • OmniVision Technologies (OVTI) down 17.21%
  • Splunk (SPLK) down 16.34%
  • Proofpoint (PFPT) down 12.54%
  • Elephant Talk Communications (ETAK) down 11.11%

Key Events

  • Facebook suffered a major failure today which meant the site was unaccesable for many of its users. Facebook apologized for the mishap and has since corrected the failure. However, many users of the site have already expressed their anger using various means such as Twitter. (here)
  • A US judge has dismissed Oracle's claim for compensation from Microsoft for copyright infringement of Java's software components. The $1 billion suit was dismissed on the grounds that '97% of the lines of the code used in disputed packages had been rewritten by Google and, therefore, Oracle's copyright did not cover what Google had used. Oracle has appealed the decision. (here)
  • It has now emerged, that in May, Google Chrome was used more frequently than Internet Explorer, so it is now the world's most used Internet browser according to StatCounter. StatCounter is a website analytics company. (here)
  • Google has gone to the European Commission over patent collusion by Nokia and Microsoft. It is arguing that the two companies deliberately colluded against their rivals to gain an advantage in the smartphone market. (here).
Source: Friday's Tech Recap