FYI: As Cyber Monday came to a close, the tech sector shot up and then declined Wednesday (11/29) morning. CNBC reports notable companies such as Facebook, Nvidia, and Micron were all down by more than 4%. The largest hit was from Micron, at more than 8%. Mike Bailey, director of research at FBB Capital Partners, told CNBC that he wonders “if there is some rotation going on” since “it’s surprising [to see] a pullback this big after such a strong fundamental performance.” CNBC also reports semiconductors took a hit on news that Morgan Stanley “lowered its ratings on several chip stocks such as Western Digital, Samsung Electronics and Taiwan Semiconductor to equal weight from overweight.”
Currently, a December spike is still a possibility, but this drop has produced some investor uneasiness. However, with the U.S. economy being in a strong position heading into December, the traditional “Santa Rally” and potential tax reform could still aid tech companies as the year comes to a close. After the Senate vote on December 5, tech companies could have more clarity on tax incentives, which could spur growth.
Regards,
Ted
http://investwithanedge.com/weekly-edge-will-santa-rally-boost-falling-tech-stocks
