Wednesday, May 25, 2016

The Tech Rebound

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.

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