Monday kicked off earnings week for a slew of tech companies. Despite the tech sector’s generally poor market performance this year, some experts think technology will be a bright spot in these tough times. If so, it will be important to keep an eye out for related exchange traded funds (ETFs).
- Perhaps among the most eagerly-awaited earnings were those of Apple (NASDAQ: AAPL), which did not disappoint. The tech giant said net income frost 78% on the strength of both the iPad and the iPhone.
- One bellwether for the tech industry has been IBM (NYSE: IBM). According to Larry Dignan of ZDNet, IBM reported Q2 earnings on Tuesday of $2.61 a share, beating analyst estimates of $2.58 a share.
- According to Sanjay Singh of Wedbush Securities, the tech sector has struggled in Europe thanks to a depreciating euro and concerns about austerity measures in several regions. However, Singh believes that the demand for IT related hardware and software such as virtualization and data-center consolidation has remained strong. [Tech ETFs Move After Intel Earnings.]
- Singh does cite a strong IT spending environment in the United States and Asia. In the near-term though, he expects Q3 guidance to dominate investor focus.
If consumers continue to spend on high margin Apple products and companies continue to upgrade their technology infrastructure, the tech sector may have the potential to lead the market out its doldrums. [The Bright Future for Solar ETFs.]
For more stories on the tech industry, visit our tech category.
- First Trust NASDAQ-100 Technology Index (NASDAQ: QTEC)
- PowerShares QQQQ (NASDAQ: QQQQ)
- Technology Select Sector SPDR (NYSEArca: XLK)
- iShares Dow Jones U.S. Technology (NYSEArca: IYW)
- iShares S&P North American Technology Sector (NYSEArca: IGM)
- iShares S&P Global Technology Sector (NYSEArca: IXN)
Sumin Kim contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.