Yesterday was another big day for tech stocks, and the sector that has been one of the most disappointing in the entire market is now close to posting a gain on the year. After a string of disappointing first-quarter earnings in April, tech companies in the S&P 500 have risen 3.4 percent so far in May.
That increase brings the tech sector’s 2016 losses down to 0.1 percent. The sector is still the third-worst performer behind health care and financials so far this year, but there may be more good news on the way.
Of tech companies in the S&P 500, 76 percent have announced earnings above analysts’ estimates, and 61 percent have reported revenues that beat expectations, according to FactSet as of Friday. That's higher than the overall marks for the S&P 500, where 71 percent have beat earnings expectations and 53 percent exceeded revenue forecasts.