Technology shares are bucking the QE2-driven downward trend in the opening hour of trading, which may bode well for the overall market.
The tech-stuffed Nasdaq Composite is just into positive territory while the blue-chip Dow Jones Industrial Average is having a tougher time, though it has bounced off its lows. The pre-open jitters about QE2 may have been overdone.
After an ocean of red greeted the opening bell, various tech names have started to move into the green led by Broadcom. The telecom chipmaker had a big third quarter and its shares are up about 8%. Intel, Advanced Micro and Micron are all higher and the SOX chip index has remained positive all morning, currently up 1.5%. As Matt noted yesterday, a good SOX is good for all.
Akamai reports after the close and its shares are up more than 3%. Apple is having a battle to stay positive and remains about $10 off its $318 a share pre-earnings peak. Big, old tech (bet they hate being called that!) is lower, with Microsoft, Cisco and IBM ailing.