Technology stocks lose more ground as a harsh view of the semiconductor market and pessimism about the economic recovery contribute to broad losses across the sector.
Several chip-stock downgrades take the tech sector down, Microsoft talks it up at its annual meeting and AOL sets up a lot of job cuts along with its spinoff from Time Warner.
The semiconductor sector was downgraded Thursday as analysts took a cautious stance ahead of a holiday season that looks to be marked by weak consumer demand for electronics.
"What we're seeing is the market following the global markets lower, and of course we have the dollar which is rising today. And that's taking the some of the risk appetite out of the market."
World stocks slid Thursday after analysts at Bank of America Merrill Lynch reportedly downgraded their recommendations on a series of U.S. technology stocks, including Intel Corp. That feeded mounting concerns that current valuations are not justified by the pace of the global economic recovery.
Chip Stocks Drag on Market Stocks fell as declines in metals and crude-oil futures weighed on the materials and energy sectors, while chip companies were hurt by an analyst downgrade.
Shares of Intel Corp., Texas Instruments and other chip makers fell sharply Thursday after Bank of America downgraded the two tech giants and the entire sector on concerns of inventories overshooting real demand.
US stocks dropped sharply on Thursday after a bleak outlook for the semiconductor industry added to investor concerns about the pace of economic recovery.
Technology stocks fell Thursday as a harsh view of the semiconductor market and pessimism about the economic recovery contributed to broad losses across the sector.
Technology stocks retreated in early trading Thursday as pessimism over the outlook for the global economy weighed on the broad market. Decliners included Intel Corp. , which fell 81 cents a share, or more than 4%, to $19.30 after Bank of America Merrill Lynch Sumit Dhanda cut his rating on the semiconductor giant to neutral from buy.
U.S. stock index futures pointed to a solidly lower open on Thursday, as a stronger dollar pressured commodities and investors awaited weekly jobless claims data.
BofA Merrill Lynch lowered its 2010 growth forecast for global semiconductor industry and downgraded ten chipmakers, including Intel Corp , turning more cautious on the group on expectations of a modest overshoot in global supply chain inventories.
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