By Rex Crum, MarketWatch Software giant gets lift as Nomura analyst raises price target

SAN FRANCISCO (MarketWatch) -- Tech bellwethers Microsoft Corp. and Apple Inc. advanced Thursday in what was turning into a mixed trading session for the tech sector.

Microsoft stock (MSFT) rose 1.3%, to $48.70, after Nomura Equity Research analyst Rick Sherlund raised his price target on the company's stock to $56 from $50. In a research note, Sherlund cited Microsoft's gains in cloud-based services, which have aided in the growth of its Office software suite, among the reasons for raising his view on the company's share price.

Sherlund also said Microsoft's board of directors may take up the matter of returning more of its cash to shareholders. Microsoft held its annual shareholders meeting on Wednesday, the first with Satya Nadella as Chief Executive.

Separately, book retailer Barnes & Noble Inc. (BKS) said it has terminated a commercial agreement it had with Microsoft regarding B&N's Nook e-reader. Microsoft originally invested in the Nook in 2012.

Apple (AAPL) shares rose 54 cents, to $116.48, and other gains came from Groupon Inc. (GRPN), Twitter Inc. (TWTR) and Priceline.com Inc.(PCLN).

Google Inc. shares (GOOGL) slipped by $1.50 to $535.48. The company said it will launch kid friendly versions of its Chrome browser and YouTube music streaming service next year.

IBM Corp. stock (IBM) gave up $1.16 to trade at $163.28. Cantor Fitzgerald analyst Brian White said in a research note that while 2014 "has been another disappointing one for IBM investors", he believes the tech-services giant will show signs of improvement next year.

Amazon.com Inc. (AMZN) was off by $1.42 to $315.03 following reports that the company has launched a new takeout food delivery service in Seattle that is similar to that offered by Grub Hub Inc. (GRUB)

The tech-heavy Nasdaq Composite Index (RIXF) shed 8.5 points to 4,766.

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