Briefing commentary on today's tech action:
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General Commentary:
Large-cap tech names remained on the defensive Thursday, as evidenced by declines in Cisco (CSCO 109 3/16 -2 9/16), Sun Microsystems (SUNW 57 13/16 -3 5/8), Lucent (LU 58 1/4 -2 7/16), MCI/Worldcom (WCOM 83 7/8 -3 13/16), Texas Instruments (TXN 106 1/8 -5 43/64), Amazon (AMZN 168 1/4 -25 1/4), Applied Materials (AMAT 51 7/8 -2 5/16), CMGI (CMGI 239 3/8 -11 3/16), EMC Corp. (EMC 105 9/16 -4 11/16) and America Online (AOL 140 1/2 - 2 1/2)... As long as these stocks stay under pressure it will be tough for sector to stage a meaningful recovery... However, as most of these stocks have now retraced a sizable (if not complete) percentage of their recent advances, Briefing.com expects buyers to (re)emerge... Saw some of this late Thursday, as techs bounced well off their lows in the last 30 minutes... Based on some decent earnings reports announced after the close (see table below), momentum should carry over into early trading today... And once techs start firing, investors tend to rush back in for fear of missing out on next big move... This behavior has limited recent pullbacks and right now no reason to think current situation will play out any differently.
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