By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- The tech sector got off to a
solid start Friday, buoyed by solid gains from shares of Microsoft
Corp., Netflix Inc. and chipmakers.
The Nasdaq Composite Index (RIXF) traded up 17 points, or 0.6%,
to stand at 3,148. The benchmark was on track to end a choppy week
with a fractional gain.
The sector got a lift from Microsoft Corp. (MSFT) shares of
which recovered from a wobbly start and were last trading up nearly
1% to $27.84.
The move came after the Dow Jones Industrial Average component
posted mostly in-line financial results for the second quarter late
Thursday. The stock was among the best performers in the Dow
industrials (DJI), which was up 41 points.
On the other hand, Apple (AAPL) shares continued to be volatile
following the company's disappointing report issued late Wednesday.
The stock was last trading down a fraction to $449.02, after
Goldman Sachs cut its price target by $100.
In a note, Goldman said: "The problem, and the key
disappointment in the call, was that management made it pretty
clear that it was moving toward providing more realistic guidance.
In this case, the guidance was a definitive disappointment."
At the same time, Goldman kept Apple on its conviction buy list,
citing "our optimism that new products in the coming months will
reinvigorate new user growth, with a sticky installed base serving
as a baseline for valuation support."
Also Friday, the chip sector was in rally mode with the
Philadelphia Semiconductor Index (SOX) gaining nearly 2%, as
KLA-Tencor Corp. (KLAC) saw its stock soar more than 10% after the
semiconductor equipment company posted second-quarter results that
beat expectations.
Fellow chip company Cirrus Logic Inc. (CRUS) saw its shares jump
8%, after posting a big jump in third-quarter profit on surging
sales. Cirrus Logic is a supplier to Apple and its stock took a hit
after the iPhone maker report disappointed Wall Street.
But in a note, Canaccord Genuity analyst Bobby Burleson
reiterated a buy rating, saying the stock "remains attractively
valued, and we expect strong revenue growth in the September and
December quarters on new product launches by Apple."
Neftlix (NFLX) was again on the rise, up more than 11% at
$163.50. The online video-streaming company surprised investors on
Wednesday with better-than-expected results for the fourth
quarter.
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