After the record setting rally last week, U.S. stocks tumbled at the open today and the S&P 500 Index fell for the first time in six days on concern that the global recession is deepening. While all eyes were on the retail sector as Black Friday sales opened the holiday shopping season, technology stocks saw black as all but a few stocks ended the week on a positive note.
Oracle (NASDAQ: ORCL) was down 1.6 percent as a result of Barclays Capital cutting its price target to $22 from $27. Barclays also lowered its full-year estimates on the world’s third-largest software maker expecting lower closure rates and a continued contraction in IT spending over the next several quarters. Seagate Technology (NASDAQ: STX) was down with a loss of 4.3 percent. Seagate released a fix for the Barracuda 1.5TB drives, but this did little to calm investor concerns.
Research in Motion (NASDAQ: RIMM) was last week’s loss leader down 5.2 percent. While MySpace and RIM shattered download records with 400,000 downloads of Blackberry smart phone applications, little could be down to settle analysts concerns regarding OS problems on the new Blackberry Storm.
Nortel (NYSE: NT) saw the week’s biggest gain of 35.7 percent, but also the months biggest loss at 1.3 percent. The stock is trading well below a dollar and is still listed as a hold by many analysts.
FalconStor (NASDAQ: FALC) was the week’s big winner, up 34.9 percent as investors and analysts continue to applaud the strategic partnerships of the company and their continued leadership in the industry.
Not all the news was positive. While the week ended up for technology stocks, the overall numbers for November were double digit losses. The three leading distributors Ingram Micro (NYSE: IM), Synnex (NYSE: SNX) and Tech Data (NASDAQ: TECD) all posted double-digit losses for the month of November.
VMware (NYSE: VMW), a favorite with technology investors, noted a disappointing 27.4 percent point loss for the month.
AMD (NYSE: AMD) was up 29.7 percent for the week after the launch of a new Shanghai processor, but could not make up for all of its November losses. It closed the month off 25.3 percent.
Solution provider stocks did fare better than vendor stocks, but only by a slim margin. Insight (NASDAQ: NSIT) was the loss leader for November with a decline of 32.6 percent. PCMall (NASDAQ: MALL) was down a disappointing 8.2 percent continuing the weakness noted in the dirct-market reseller community. Even Citigroup’s services division could not rally back for the month. Despite rallying back 120 precent from its month low, it still ended November down nearly 30 percent.
All eyes will remain on the market today as the preliminary retail sales estimates for Black Friday are released. Later in the week, the government will release the jobless report for November. Neither report is expected to be positive nor increase stock volumes. The jobless report is anticipated to show the steepest decline in payroll jobs since the weeks following the 9/11 terrorist attacks.
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Leading Technology Vendor Stocks |
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|
Company |
10/31 |
11/28 |
Difference |
| Adobe Systems (ADBE) | 26.64 | 23.16 | -5.80% |
| Adtran (ADTN) | 15.2 | 14.2 | -3.60% |
| Alcatel-Lucent (ALU) | 2.01 | 1.67 | -21.60% |
| AMD | 3.5 | 2.36 | -25.30% |
| Apple (AAPL) | 107.59 | 92.67 | -5.70% |
| Arrow Electronics (ARW) | 17.45 | 13.8 | -16.00% |
| Avnet (AVT) | 16.74 | 14.24 | -12.70% |
| BMC Software (BMC) | 25.82 | 24.96 | -2.70% |
| CA | 17.8 | 16.84 | -0.30% |
| Canon (CAJ) | 34.27 | 29.76 | -12.10% |
| Check Point (CHKP) | 20.22 | 20.61 | 4.40% |
| Cisco Systems (CSCO) | 17.22 | 16.54 | -5.90% |
| Citrix Systems (CTSX) | 25.77 | 26.66 | 10.50% |
| Data Domain (DDUP) | 18.46 | 16.25 | -10.50% |
| Dell | 12.15 | 11.17 | -11.00% |
| EMC | 11.78 | 10.57 | -2.90% |
| FalconStor (FALC) | 3.01 | 2.9 | 11.50% |
| Foundry Networks (FDRY) | 14.85 | 15.49 | 7.30% |
| Google (GOOG) | 358.36 | 292.96 | -11.50% |
| HP (HPQ) | 38.28 | 35.28 | 1.80% |
| IBM | 92.97 | 81.6 | -5.40% |
| Ingram Micro (IM) | 13.33 | 10.77 | -20.80% |
| Intel (INTC) | 16.03 | 13.8 | -5.70% |
| Juniper Networks (JNPR) | 18.74 | 17.38 | 0.10% |
| Lexmark (LXK) | 25.83 | 26.18 | 1.30% |
| McAfee (MFE) | 32.55 | 30.33 | -0.80% |
| Microsoft (MFST) | 22.33 | 20.22 | -6.00% |
| Motorola (MOT) | 5.37 | 4.31 | -10.00% |
| NetApp (NTAP) | 13.53 | 13.5 | 5.50% |
| Nokia (NOK) | 15.18 | 14.17 | -7.40% |
| Nortel Networks (NT) | 1.25 | 0.57 | -51.30% |
| Novell (NOVL) | 4.66 | 4.55 | 0.70% |
| Oracle (ORCL) | 18.29 | 16.09 | -8.20% |
| Polycom (PLCM) | 21.01 | 18.83 | 0.40% |
| Rackspace (RAX) | 5.69 | 6.9 | 18.40% |
| Red Hat (RHT) | 13.31 | 9.25 | -27.80% |
| Research in Motion (RIMM) | 50.43 | 42.47 | -12.70% |
| Salesforce.com (CRM) | 30.96 | 28.62 | 0.20% |
| SAP | 35.33 | 34.14 | -4.70% |
| ScanSource (SCSC) | 19.84 | 17.01 | -7.60% |
| Seagate Technology (STX) | 6.77 | 4.21 | -36.20% |
| Sun Microsystems (JAVA) | 4.6 | 3.17 | -24.50% |
| Sybase (SY) | 26.63 | 24.64 | -4.70% |
| Symantec (SYMC) | 12.58 | 12.03 | -8.90% |
| Synnex (SNX) | 15.43 | 10.46 | -28.50% |
| Tech Data (TECD) | 21.45 | 17.44 | -20.70% |
| VeriSign (VRSN) | 21.2 | 21.59 | 1.60% |
| VMWare (VMW) | 31 | 19.35 | -27.40% |
| Websense (WBSN) | 19.52 | 16.17 | -10.50% |
| Xerox (XRX) | 8.02 | 6.99 | -4.50% |
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Leading Solution Provider Stocks |
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| Company |
10/31 |
11/28 |
Difference |
| Accenture | 33.05 | 30.98 | 1.50% |
| BT Global Services | 18.9 | 20.71 | 13.20% |
| CSC | 30.16 | 27.86 | -9.30% |
| Northrup Grumman | 46.89 | 40.95 | -6.90% |
| Lockheed Martin | 85.05 | 77.11 | -2.10% |
| Atos Origin | 18.1 | 17.35 | -0.20% |
| SAIC | 18.47 | 17.8 | -1.20% |
| ADP | 34.95 | 41.06 | 15.90% |
| NTT Data Corp | 20.35 | 21.95 | -2.90% |
| Affiliated Computer Services | 41 | 40.45 | -4.60% |
| Unisys | 1.52 | 0.67 | -26.40% |
| Tata Consultancy Services | 537.45 | 558.05 | 6.40% |
| Harris Corp | 35.95 | 34.88 | -4.50% |
| ITT | 44.5 | 41.86 | -2.50% |
| OfficeMax | 3.6 | 1.97 | -24.80% |
| CGI Group | 8 | 7.47 | -6.00% |
| Insight North America | 9.73 | 4.07 | -32.60% |
| Convergys Corp. | 7.69 | 6.29 | -7.90% |
| Staples | 19.43 | 17.36 | -5.40% |
| Fiserv | 33.36 | 34.14 | 2.70% |
| Systemax | 14.16 | 9.78 | -19.30% |
| Perot Systems | 14.39 | 12.48 | 10.40% |
| OfficeMax | 8.05 | 5.45 | 3.80% |
| WiPro Infotech | 7.74 | 7.56 | -3.70% |
| Citigroup TSC | 13.65 | 8.29 | -29.90% |
| QinetiQ | 170 | 173.5 | 4.70% |
| Raytheon TSC | 51.11 | 48.8 | -0.40% |
| Siemens | 60.15 | 59.7 | 5.90% |
| CAIC | 41.18 | 44.41 | 8.80% |
| PCConnection | 6.04 | 5.13 | 3.20% |
| Metavante | 16.77 | 17.27 | 6.30% |
| Cerner Corp | 37.23 | 35.98 | -5.80% |
| ManTech | 53.94 | 54.42 | 10.20% |
| Acxion | 7.86 | 7.51 | 3.70% |
| McKesson | 36.79 | 34.94 | -8.70% |
| SRA International | 18.48 | 15.02 | 9.70% |
| PCMall | 4.48 | 3.68 | -8.20% |