By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- The technology sector turned
mostly higher on Friday, buoyed by solid gains from shares of
Microsoft Corp., Netflix Inc. and chip makers, but shares of Apple
Inc. again were in the red.
The Nasdaq Composite Index (RIXF) traded up 19 points, or 0.6%,
to 3,150. The benchmark ended the week with a fractional gain.
The sector got a lift from Microsoft Corp. (MSFT), shares of
which recovered from a wobbly start, rising 1% to close at
$27.88.
The move came after the software giant posted mostly in-line
financial results for the second quarter late Thursday. The stock
was among the best performers in the Dow Jones Industrial Average
(DJI), which was up 71 points.
On the other hand, Apple (AAPL) shares continued to be volatile
following the company's disappointing report issued late Wednesday.
The stock traded down 2.4% to close at $439.88, after Goldman Sachs
cut its price target by $100.
In a note, Goldman wrote: "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, the investment bank 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 1.3%, as KLA-Tencor
Corp. (KLAC) saw its stock soar 8.4% to close at $56.34 after the
semiconductor equipment company posted second-quarter results that
beat expectations.
Fellow chip company Cirrus Logic Inc. (CRUS) saw its shares jump
10% to close at $29.42, 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."
Netflix (NFLX) rose again, gaining 15.5% to close at $169.56.
The video-streaming company surprised investors on Wednesday with
better-than-expected results for the fourth quarter.
Also on the rise were shares of Juniper Networks Inc. (JNPR),
which traded up 5% to close at $22.57, after the maker of
networking gear reported better-than-expected results.
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