AI
Saturday, February 10, 2007 3:23:52 PM
Market Update 070209
http://biz.yahoo.com/mu/update.html
4:20 pm : What was initially shaping up to be just another sluggish day of vacillating around the unchanged mark, like stocks had been doing throughout most of the week, actually became quite a disappointment for the bulls.
There were no economic releases on the calendar Friday and there were no big earnings reports of note. However, with oil prices eclipsing the $60/bbl mark going into another cold weekend and interest rates on the rise following some hawkish Fed speak, the stage was set for the bears to keep their eyes peeled for a catalyst to finally work off some of the sizable gains endured a week earlier that were already coming under scrutiny.
Then, just as the afternoon session got under way, sellers hungry to lock in profits found the news they deemed necessary to keep buyers sidelined into the close. Albeit not a tech bellwether, Micron Technology (MU 12.54 -0.35) saying it sees memory chip prices plunging 30-40% this quarter sent a shockwave through a tech sector already vulnerable. Just look at the lack of follow through from Cisco Systems' (CSCO 27.71 -0.43) upbeat report earlier in the week.
While Cisco boosting its sales outlook two days ago offered some reassurance about tech's growth prospects, especially following lowered guidance of late, Micron dangling another piece of uncertainty exacerbated the market's underlying skepticism about the sector's profit potential.
Since higher interest rates spark valuation concerns among growth stocks as well, Treasuries consolidating a week's worth of gains took an added toll on a tech sector slated to be one of the biggest profit drivers this year. The 10-year note yield rose to 4.78% after several Fed officials further diminished hopes of a rate cut anytime
http://biz.yahoo.com/mu/update.html
4:20 pm : What was initially shaping up to be just another sluggish day of vacillating around the unchanged mark, like stocks had been doing throughout most of the week, actually became quite a disappointment for the bulls.
There were no economic releases on the calendar Friday and there were no big earnings reports of note. However, with oil prices eclipsing the $60/bbl mark going into another cold weekend and interest rates on the rise following some hawkish Fed speak, the stage was set for the bears to keep their eyes peeled for a catalyst to finally work off some of the sizable gains endured a week earlier that were already coming under scrutiny.
Then, just as the afternoon session got under way, sellers hungry to lock in profits found the news they deemed necessary to keep buyers sidelined into the close. Albeit not a tech bellwether, Micron Technology (MU 12.54 -0.35) saying it sees memory chip prices plunging 30-40% this quarter sent a shockwave through a tech sector already vulnerable. Just look at the lack of follow through from Cisco Systems' (CSCO 27.71 -0.43) upbeat report earlier in the week.
While Cisco boosting its sales outlook two days ago offered some reassurance about tech's growth prospects, especially following lowered guidance of late, Micron dangling another piece of uncertainty exacerbated the market's underlying skepticism about the sector's profit potential.
Since higher interest rates spark valuation concerns among growth stocks as well, Treasuries consolidating a week's worth of gains took an added toll on a tech sector slated to be one of the biggest profit drivers this year. The 10-year note yield rose to 4.78% after several Fed officials further diminished hopes of a rate cut anytime
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