Here's a useless and offbase street.com article, I'm posting it just because it is so clueless! His argument is that even though the tech quarter was good, the mkt cap of these companies is too low to influence the mkts compared to the rbocs and McD, caterpillar, therefore tech is overrated in the minds of investors, and therefore has further to fall.
I guess its hard to explain the mkts on a day to day basis, you always have to think of something.
Tech Love Never More Than a Quarter Away
Nearly three years after the Nasdaq Composite's peak, and following myriad tech-led recoveries that proved to be false dawns, Wall Street keeps a myopic focus on the sector. The positive tone Thursday stemmed from optimism about results from firms such as Texas Instruments, PeopleSoft, Qualcomm and Siebel Systems.
There's nothing inherently wrong with that, and that foursome did post better-than-expected headline numbers. But what's notable is the combined market cap of those tech firms, at $63.3 billion, is dwarfed by the $143.7 billion combined market cap of four Dow components -- AT&T, SBC Communications, McDonald's and Caterpillar -- which posted uniformly disappointing results.
That those disappointments didn't hold sway in Thursday's session suggests tech stocks continue to cast a spell over traders that is undeserved, based on their influence on market-cap-weighted averages. Arguably, information technology's 14.3% weighting in the S&P 500, as of Dec. 31, overstates the sector's importance in the overall economy.
thestreet.com |
