From briefing.com:
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Despite an overbought technical tone, Briefing.com expects the tech sector to continue its powerful rally for the following reasons:
Fed will decided to keep policy on hold at this week's FOMC meeting... Long-term rates likely to dip below 6.0%.
E-tailing stocks, which began to come to life late last week, will extend gains in anticipation of a big holiday season... While expectations for Net shopping this holiday are much higher than they were at this time last, marketplace has consistently underestimated e-tailing numbers... Potential for even modest positive surprises will underpin these market laggards.
Net sector to get big boost from several conferences (highlighted below).
Chip Equipment industry to benefit from earnings news... Briefing.com expecting good results and positive outlooks from Applied Materials (AMAT 109), Brooks Automation (BRKS 26), Etec Systems (ETEC 45 3/4), Kulicke & Soffa (KLIC 37) and PRI Automation (PRIA 49 3/8).
Money continues to pour back into stocks, with techs the investment of choice... Due to strong seasonals no reason to expect funds to dry up.
IPO market remains red hot... For a list of this week's offerings, see our IPO Calendar.
M&A activity also drawing money to the sector... Speaking of which, Corning (GLW 90 3/8) announced Sunday that it was paying $1.8 bln to acquire Oak Industries (OAK 49 3/4)... Oak Industries shareholders will receive 0.83 share of Corning stock for each Oak share held... While Briefing.com contends that the parts-maker is a nice long-term fit for GLW, the 51% premium to Friday's closing price seems a bit rich to us... Even so, GLW noted that they expect deal to be accretive in FY00.
Admittedly, at current prices much of the good news is priced in... However, we don't see anything on this week's agenda that is likely to derail the sector's impressive momentum... Consequently, stay the course and stay long.
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