The tech sector began the day very bullish. Like every other sector, it was up more than 1.00% in the early hours of trading. However, after Bernanke's announcement, which turned out to not be as important as many expected, the tech sector fell from its high, finishing the day 0.46% down. Large cap stocks like Microsoft (MSFT), Oracle (ORCL) and Priceline.com (PCLN) were all originally up before sinking into negative figures over the course of the day.
The markets were similarly affected by Bernanke's lack of news. Although being up early in the day, the Nasdaq and the S&P 500 sunk into negative figures at the close of the day. The Dow Jones, however, remained positive, up 0.37%. The Nasdaq was the worst performing of the three as it finished 0.48% down whereas the S&P 500 was only down 0.01%. This is unsurprising as the tech sector was the worst performing sector over the course of the day.
Today marked the first day the tech sector has finished negative this week. Overall, it is now up 3.10% for the week. Investors should not take this as a sign of weakness but merely a readjustment from the sector, which has grown much faster than almost every other sector this week. Of particular excitement in the near future is the possible resurgence of Nokia (NOK) which will seek to benefit off its strategic partnership with Microsoft. The release of Windows 7 OS in Nokia's smart phones should not be underestimated as the IDC has suggested Windows 7 will claim more than 19% of the market share by the end of 2016 overtaking Apple's iOS system.
- CACI International (CACI) up 10.00%
- Valence Technology (VLNC) up 8.93%
- Innodata Isogen (INOD) up 6.55%
- Sify Technologies (SIFY) up 6.36%
- Brightcove (BCOV) up 6.05%
- Ubiquiti Networks (UBNT) down 14.28%
- Marchex (MCHX) down 8.45%
- Comverse Technology (CMVT) down 7.41%, but up 0.53% after hours
- ChipMOS Technologies (IMOS) down 6.73%
- Kulicke and Soffa Industries (KLIC) down 6.19%, but up 2.29% after hours
- Google (GOOG) has demonstrated its new mapping technology, with this step Google is hoping to reclaim some of the market share it has lost in recent months to other mapping technologies. However, they should find it difficult, as Apple (AAPL) is expected to announce the development of its own mapping technology. This will steal a significant part of the market share as it will be the default of Apple smartphones and tablets. (here)
- Apple has filed with a U.S. Court claiming that Samsung's (SSNLF.PK) Galaxy S3 smart phone violates two of its patents. This clearly is an attempt by Apple to disrupt the launch of the smart phone which is due to go on sale in the U.S. on June 21st, after a very successful launch in Europe. Samsung has announced that Apple's "request is without merit" and they "will vigorously oppose the request." (here)
- Telefonica (TEF) and Vodafone (VOD) have announced plans to create one shared grid for the two companies. They will operate the grid together and will pool their collective infrastructure. This joint venture will allow both companies to cut costs and become more competitive while offering a higher service to their customers. (here)
Disclosure: I am long NOK.