Tech stocks rise again, led by chips
SAN FRANCISCO (MarketWatch) -- Tech stocks kept up their winning streak on Tuesday, as gains in the semiconductor sector stood out after Goldman Sachs issued several upgrades.
Tech benchmarks outpaced gains in the broader market, where the S&P 500 index picked up nearly 1% in midday trading. The Nasdaq Composite Index (COMP) rose almost 26 points, or nearly 1% to close at 3,015, while the Morgan Stanley High Tech 35 Index (MSH) rose 1.3%.
Chips saw the strongest gains, with the Philadelphia Semiconductor Index (SOX) climbing 2%, with sector leader
"We believe that supply is healthy, Street estimates have been reduced by the 5-10% that we suggested was needed in our 2Q preview that we published July 1st, and stocks are pricing in weaker demand," the brokerage wrote in its report.
Goldman also upgraded
In other ratings moves,
"Keys to [NetApp's] success will include leveraging its new clustering capability into larger clouds, delivering product innovation and its marketing reach," Milunovich said.
"We expect the stock to continue underperforming until investors are convinced H-P is not in secular decline," Milunovich wote.
A standout decliner Tuesday was
Late Monday, the company reported second-quarter results that fell short of analysts' forecasts. Analysts at Robert W. Baird and Hudson Square Research cut their ratings on Leap's shares, pushing the stock hit an all-time low. Read The Ratings Game on Leap's troubles.