Technology Sector Update for 07/27/2020: SOGO,SOHU,TSM,INTC,AAPL,TSM
Technology stocks were helping lift the broader equity markets to positive ground, with the SPDR Technology Select Sector ETF Monday ahead 1.2% while the Philadelphia Semiconductor Index was rising 2.9%.
In company news, Sogou (SOGO) raced 48% higher after the Chinese-language search engine company received a non-binding acquisition proposal from entertainment conglomerate Tencent Holdings Ltd. Under terms of the prospective transaction, Tencent would pay $9 in cash for the 60.8% of Sogou it doesn't already own, including Sogou's parent company Sohu.com's 33.8% equity stake.
United Microelectronics (UMC) climbed almost 18% after Monday disclosing in a new regulatory filing its purchase of machinery and equipment from an Applied Materials (AMAT) subsidiary in Taiwan for about TWD1.02 billion. The chipmaker also responded to news reports last week it is expecting to report its best operating profit in a decade on Wednesday, saying it did not issue any forecast and noting the July 23 estimate was "based on the speculation of a journalist."
Taiwan Semiconductor (TSM) Monday also rose over 12% to another record high of $82.86 a share after the Taipei-based Commercial Times newspaper reported Intel (INTC) has placed an order with the contract chipmaker for 180,000 of its 6-nanometer processors for 2021. Monday's advance also has supported by a separate report in Taipei's Economic Daily News that Apple (AAPL) is planning to set up a research and development plant within Taiwan Semiconductor to work on high-end displays.