Apple, IBM, Microsoft Will Test Tech Rally

Over the past six weeks, technology shares have soared. The Nasdaq Composite, an admittedly broad measure of tech, has risen 15% during that period, leading the market on its latest upward sprint.
Is that all about to go awry, starting this morning? Late yesterday, it certainly looked to be the case. Investors reacted badly to Apple and IBM earnings – which were both strong, but not strong enough to satisfy. Then came news of a top executive departing moribundish Microsoft.
This morning, however, global stocks are mostly higher. Asia has closed mostly in positive territiory and Europe is edging upward. Technology stocks, however, are putting in a mixed day, reflecting, perhaps, concern about what will happen when the U.S. opens in a couple hours.
Not too many big tech earnings today (EMC Corp. and Juniper Networks report), so tech-centric investors will continue to examine the earnings results from Apple and IBM. Since the view seems to be that the earnings weren’t “strong enough,” as opposed to truly lousy, the downside for both companies, and tech generally, is most likely limited.
Don’t be surprised if they are trying to take the group higher by the second-half of the session.