Computer networking ETFs were top of the heap Wednesday
afterRiverbed Technology (
) blew away second-quarter forecasts.
IShares S&P North American Technology Multimedia
Networking Index (
) surged 4.08% as Riverbed shares rocketed 27% in six times
average volume. Riverbed topped both earnings and sales
expectations for Q2 and said Q3 results would be higher than
Another IGN holding,Juniper Networks (
) -- the world's No. 2 maker of networking gear -- vaulted 13%
after it announced a $75 million deal with competitor Riverbed to
license products that boost application performance.
IGN's third-biggest gainer, Motorola Solutions (
) soared 6% after raising its quarterly dividend and announcing
it would buy back $2 billion of its shares.
Broadcom 's (
) second-quarter earnings surprise pushedPowerShares Dynamic
Semiconductors (PSI) ahead 3.46%. Deutsche Bank analyst Ross
Seymore reiterated his buy rating with a $44 price target on the
"Broadcom delivered strong Q2 results driven by combo chip
upside and guided for solid 3Q growth as company-specific product
cycles and share gains largely offset macro headwinds," Seymore
wrote in a client note. "We believe these share gains are likely
to continue into 4Q12/2013 and expect shares to react
Broadcom shares jumped nearly 9%.
Both IGN and PSI are trading below their 50- and 200-day
moving averages, so it's too soon to tell whether today's surge
could spawn a new uptrend or whether it's just a countertrend
rally in a downtrend that started in late March. They have very
weak Relative Strength Ratings of 17 and 34. That means they're
underperforming 85% and 66% of the market. They also have poor
Accumulation/Distribution Ratings of D+ and C-, which indicates
institutions are selling more shares than buying.
In afternoon trade,
SPDR S&P 500
(SPY) was ahead 0.25%.SPDR Dow Jones Industrial Average (DIA)
added 0.79%.PowerShares QQQ (QQQ), a basket of the 100 largest
nonfinancial stocks on the Nasdaq, shed 0.30% owing to an
earnings miss by index heavyweight,Apple (AAPL), which sent the
tech giant down nearly 4%.
Other major earnings misses includedNetflix (NFLX), which
crashed 25%, andBuffalo Wild Wings (BWLD), whose shares were
"This week has seen several major markets set in motion and we
expect the majority of these moves to continue through the end of
trading Friday," Waverly Advisors wrote in a daily client note.
"Equities are breaking to the downside; do not expect clean, easy
trades, but forces appear to be aligning to support a continued
IShares MSCI EAFE Index (EFA), tracking developed foreign
MSCI Emerging Markets Index (EEM) both climbed 0.87%.
Tom McClellan of the McClellan Market Report told clients he
believes the market is pulling back in an uptrend that should
send the major indexes to new highs. He cites commitment of
traders data, which tracks fund flows in the stock market.
"Notice back in early 2011 that opinions about the economy got
really ugly about a month after the tsunami that hit Japan, but
then turned around sharply as the Dow Jones pushed to an even
higher high," McClellan wrote in his daily newsletter. "This
current situation seems to be set up for a similar rebound, with
the stock market due to turn up in August."
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