Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

MV Weather Report: Tech Sector Gets Rained Out?


Rain or shine, we review the day's biggest stock stories.

Choppy, seesawing, herky-jerky - these are words I would use to describe today's trading. The market had no idea where it wanted to go today.

One of the reasons for the choppiness was the action in the banking sector. Morgan Stanley (MS) reported numbers that disappointed investors and raised a lot of questions.

Here's a Buzz & Banter post from Mr. Practical on the company:

"Morgan Stanley reported this morning. The firm did basically the same thing Goldman Sachs (GS) did with losses. Because it switched to a December year-end from November - the result of becoming a "bank holding company" - the company "hid" approximately $9 billion of losses in between November and December.

"I guess the market believes that what is not reported is not real."

The market was strong for most of the session, but late in the day, the DJIA and S&P popped like a balloon, releasing the hot air that had artificially inflated them during the day. The financials -- Wells Fargo (WFC), Bank of America (BAC) and JPMorgan (JPM) -- led the push lower.

The obvious strength today was in technology, which is actually where the strength has been all year. I even instant-messaged a trading buddy today to ask him if it was 1999 again (Full disclosure: I wasn't even old enough for high school at the time).

A quick glance at the screens shows Apple (AAPL), Research in Motion (RIMM), Amazon (AMZN), VMWare (VMW) and eBay (EBAY) all making large percentage moves. These have been the leaders of this market.

However, the steam may be coming out of these winners, as many of them are reporting numbers tonight or tomorrow. VMWare is already out: The company reported EPS of $0.25 vs $0.20 First Call consensus; revenues were $470 million, versus estimates of $474.38 million. The market didn't like these numbers, sending the stock down to 28.60 in after-hours, closing at 32.55, down almost 4 points.

Will the other tech leaders get reactions like this? If so, the market may again test its 20 DMA sometime this week.

Tomorrow, traders will be watching for economic data before the bell at 8:30 a.m. There will also be a barrage of earnings. In the morning, we'll hear from Pepsi (PEP), Potash (POT), UPS (UPS), to name a few. During the afternoon session, we'll hear from Amazon, Amgen (AMGN), Baidu (BIDU), Microsoft (MSFT) and Netflix (NFLX).

For a full list of all the companies reporting earnings, check out the trading radar.

Have a good night, Minyans!

In memory of our fallen friend and trusted colleague, Bennet Sedacca, 100% of the donations made to the RP Foundation through April will be channeled to philanthropic endeavors consistent with the RP mission, working closely with the Sedacca clan in the distribution of those funds. We thank you kindly for your support as we strive to effect positive change in the lives of children.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos