Wednesday's Tech Recap: Not Dell's Best Day

by: Rupert Nicholson

The technology sector finished the day level after a bearish run in the morning. The sector was finished at 0.00% at the close of the day after being down more than 1.50% in the early hours of the day. Initially, it fell after Dell (DELL) reported disappointing earnings and fell more than 17% pulling several other companies in the PC business down a few percent as well.

In the later hours of the day, the sector was pulled up by a bullish Apple (NASDAQ:AAPL) which gained 2.44% through the course of the day. The Nasdaq suffered due to the tech sector's initial fall. However, it finished positive after tech's recovery in the later hours of the day.

Top Gainers

  • School Specialty (NASDAQ:SCHS) up 23.46%
  • Accelr8 Technology Corporation (AXK) up 17.33%
  • American Superconductor Corporation (NASDAQ:AMSC) up 12.71%
  • Silicon Graphics International Corp (NASDAQ:SGI) up 12.17%
  • Splunk (NASDAQ:SPLK) up 10.31%

Top Losers

  • Dell down 17.18%
  • Gilat Satellite Networks (NASDAQ:GILT) down 11.44%
  • RADCOM (NASDAQ:RDCM) down 8.21%
  • Simulations Plus (NASDAQ:SLP) down 6.32%
  • NCI (NASDAQ:NCIT) down 6.19%

Key Events

  • Dell (DELL) recorded worse than expected quarterly results. Revenue fell by 4% to $14.4 billion and sales of notebook computers and mobile devices were down by 10% when compared with the same period last year. The company fell by 17.18% during the day pulling other PC related companies down as well. Hewlett-Packard (NYSE:HPQ), Microsoft (NASDAQ:MSFT), and Intel (NASDAQ:INTC) were all down more than 2% on the news.
  • Hewlett-Packard has announced its intent to cut 27,000 jobs by the end of 2014. This move is intended to reduce its costs by $3.5 billion, allowing it to widen its profit margin. HP has also recorded better quarterly results than expected. Its fell by 3% an its profits fell by 31%. HP shares rose by over 8% in after hours trading as a result of the quarterly results.
  • Google (NASDAQ:GOOG) has won a patent dispute with Oracle (NYSE:ORCL) over whether Google used Oracle's Java programming language in the Android's operating system. They won the case because the judge agreed with them that certain parts of Java cannot be copyrighted.

Disclosure: I am long TEF, VIV, ZAGG.