This afternoon, the major stock indexes are surging higher on heavier volume. Earnings reports for the most part have been good for the large mega cap stocks such as Apple Inc.(NASDAQ:AAPL), International Business Machines(NYSE:IBM), and Google Inc.(NASDAQ:). It is important to note that there have been some earnings reports which were not well received by investors. Traders must remember, if these weak stocks fail to rally in a strong market the problems could last for these stocks.
Here is a small list of leading tech stocks that have sold off sharply due to poor earning, or in sympathy to other companies reporting poor earnings:
Novellus Systems Inc.(NASDAQ:NVLS) was trading at $36.00 before earnings, today the stock is trading at $32.50.
Research In Motion LTD.(NASDAQ:RIMM) is another leading stock that was trading at $34.50 a share before announcing earnings June 16, 2011. The stock is trading at $27.88 a share today.
Riverbed Technologies Inc.(NASDAQ:RVBD) blew up after reporting earnings on July 19, 2011. The stock was trading as $41.40 before earnings, today the stock is trading at $31.42 a share. There will be support for this stock around the $29.00 area.
F5 Networks Inc.(NASDAQ:FFIV) is getting double hit, the stock declined yesterday in sympathy to RVBD. Again today, the CEO said that growth in Europe has slowed and the stock is getting crushed. On July 19, 2011 the stock was trading as high as $118.69, today the stock is trading at $99.05 a share. Not a pretty haircut for the cloud computing networking stocks.
Other leading stocks that have sold off sharply over the past few days have been VMWare Inc.(NYSE:VMW), Salesforce.com Inc.(NYSE:CRM), and Citrix Systems Inc.(NYSE:CTXS), and Netflix Inc.(NYSE:NFLX). While the major stock indexes are surging higher today many of the leading stocks are rolling over. Traders simply need to take note of this current scenario as the mega can't simply lead the markets higher. There also needs to be a supporting cast of stocks to accompany the tech giants and that will help the markets rally further.