EmailThe tech sector is trading lower today, trailing the broader market. Semiconductors are showing relative weakness in the tech space, however, with the Philly Semi Index trading 2.5% lower. Among chips in the index, NVLS (-10.6%) and AMD (-4.6%) are notable laggards. Among other major indices, the S&P 500 is relatively flat, while the NASDAQ is trading 0.3% lower. The QQQ is also trading 0.3% lower. Among tech bellwethers, GOOG (+1.2%) and CSCO (+2.8%) are showing relative strength, while INTC (-1.1%) is under pressure.
In earnings last night, NVLS (-10.6%) reported a slight Q2 EPS beat and revenues roughly in-line. Also, MCHP (-13.6%) and AMSC (-5.7%) lowered guidance, while SCSC (+1%) issued upside guidance. This morning, INFY (-4.3%) reported a miss and offered downside guidance.
In news, NCR (-1.1%) announced it will acquire RADS (+30.5%) for $28/share. Also, CSCO (+1.0%) is reportedly set to cut 10K jobs. In rumors, we are hearing renewed S (+1.2%) for CLWR (+3.1%), takeover chatter making the rounds.
Among notable analyst upgrades this morning, HSFT (+2.8%) was upgraded to Buy at UBS and SIGM (+3.4%) and MERU (+3.7%) were upgraded to Neutral at Lazard. In downgrades this morning, ALU (-3.2%) was downgraded to Hold at Deutsche Bank, PLD (+1.3%) was downgraded to Mkt Perform at FBR Capital, CHU (-2.6%) was downgraded to Neutral at Credit Suisse, PEGA (-3.2%) was downgraded to Hold at Canaccord, MSI (-1.1%) was downgraded to Equal Weight at Morgan Stanley, and QLIK (-1.8%), MCHP (-13.4%), MXIM (-6.5%), FIRE (-2.5%), and ONNN (-8.1%) were downgraded at UBS.
There are no notable tech names set to report results today after the close.
