Apple's Shares Gain Ground by Wes George Tech stocks kicked into rally mode today, helped by encouraging economic data from last week. However, downgrades in the Internet and semiconductor sectors kept volume low and the gains moderate. There is a consensus among investors that the Federal Reserve probably won't raise rates later this month, because the economy is beginning to slow, causing the recent stock market rally. Of course, a slowing economy means that earnings are peaking for many sectors, including possibly the hot semiconductor sector.
Many analysts expect stocks to continue trading sideways or within their range.
Many IPOs are being delayed, including 8 from last week, while 6 IPOs scheduled for last week were pulled altogether. This week there are 37 IPOs scheduled. The high number of IPOs combined with recent outflows from mutual funds tends to provide too much supply for the demand in shares of tech stock equity. The company is expected to beat earnings. Piper Jaffray also anticipates a flash memory over supply and decreased sales of mobile phone handsets.