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Sector Update: Tech Sector A Big Lift For Broader Markets; Big Blue Helps Lead Dow Near 17,000 Mark

By: MT Newswires
Posted: 7/1/2014 3:52:00 PM
Referenced Stocks: IBM

Top Tech Stocks

MSFT +0.42%

AAPL +0.81%

IBM +3.01%

CSCO +0.97%

GOOG +1.45%

Technology stocks were broadly higher today with shares of technology companies in the S&P 500 jumping over 1.2% as a group.

In company news, IBM ( IBM ) was helping the Dow Jones Industrial Average Tuesday to close in on its 17,000 threshold after the tech giant announced a strategic outsourcing agreement with Banco Popular.

The companies said the new partnership will help the Puerto Rican bank company transform its technology infrastructure, including a private cloud. The agreement is seen as saving Banco Popular as much as $200 million over the next 10 years.

IBM received 41 technology infrastructure employees from Banco Popular as part of the transaction.

Separately, IBM Tuesday said it signed a five-year services agreement with Qvantel, helping the business-services firm blend its cutting-edge cloud infrastructure with Qvantel's systems of record.

Financial terms of either contract were not disclosed.

IBM shares were up about 3% in late trade at $186.74 a share, easing slightly from its session high of $187.27 a share. The stock has a 52-week range of $172.19 to $200.94 a share, declining about 0.25% in value over the past 12 months.

In other sector news,

(+) ANET, Analysts at least eight firms - including RBC Capital Markets and Deutsche Bank - today begin coverage of the cloud networking company with Buy ratings or their equivalent following its June 6 initial public offering.

(-) AYI, Q3 earnings of $1.00 per share miss analyst consensus by $0.13 per share. Revenue climbs 11.5% year over year to $603.9 mln, below estimates looking for $609.52 mln in revenue.