By Dan Gallagher, MarketWatch
SAN FRANCISCO (MarketWatch) -- Strong gains by Microsoft Corp.,
Google Inc. and Apple Inc. helped lift the tech sector on Friday
despite selloffs at IBM and Dell Inc.
The Nasdaq Composite Index (RIXF) rose 1.3% to 3,208, while the
Philadelphia Semiconductor Index (SOX) rose by 0.8%.
The Morgan Stanley High-Tech Index (MSH) fell 0.5%.
International Business Machines (IBM) was the main weight on the
group, with its shares falling 8% to $190.50 after the company
missed Wall Street's forecast for both revenue and earnings in its
first-quarter report issued Thursday afternoon.
"The stock's safe haven stature is likely to be challenged by
disappointing [first-quarter] results and execution," wrote J.P.
Morgan analyst Mark Moskowitz of IBM, trimming his price target to
$196 from $198. "Broad-based slowing in software and mainframe, as
well as in most regions, points to end demand headwinds, which we
think could persist."
Dell (DELL) shares slid nearly 4% after Blackstone announced it
was pulling out of its previously stated plan to submit a takeover
bid for the PC maker. The stock is now trading around $13.47 --
below the $13.65 offer price put forward by Silver Lake and
co-founder Michael Dell.
Microsoft (MSFT) shares rose 3.5% to $29.80 after beating
analysts' forecasts for the March period, despite downbeat
sentiment heading into Thursday's report, stemming from low PC
sales for the period.
"While the speed and magnitude of consumer Win 8 adoption
remains very much in doubt, tech value stocks have become more
favored and we believe the negative sentiment on Microsoft could
ease somewhat as the company continues to execute," wrote Gregg
Moskowitz of Cowen & Co.
Google (GOOG) shares rose by 4.5% to $801.53. The Web search
giant beat Wall Street's earnings estimates for the first quarter,
thanks mostly to strong advertising sales.
"Our global market analysis continues to suggest that Google can
grow its core search business in the low teens over the next few
years at high incremental margins," Scott Devitt of Morgan Stanley
wrote in a note to clients. "Google may therefore be able to invest
in newer projects while keeping core operating margins about
stable."
Apple (AAPL) shares rose 1% to trade at $394.80. The stock has
had a bruising week -- falling nearly 7% since Monday's open and
dropping below the $400 mark for the first time since December of
2011.
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