Tech Down As Fund Managers Draw Back From Sector - Tech Roundup

FeaturesDow Jones Newswires

Shares of tech companies fell as fund managers retreated from the sector ahead of earnings from Microsoft, Amazon.com, Apple and Facebook this week. Several large tech companies, such as Intel, have already reported better-than-expected earnings for the fourth quarter. "Large cap active managers' overweight in Tech fell for the fourth time in the past five months to its lowest level in almost a year," said analysts at brokerage Bank of America Merrill Lynch Global Research, in a research note. "Tech remains the most overweighted sector, but the reduction in Tech exposure was broad-based, with relative exposures being cut for every Tech industry over the past three months." The recent slide in the value of the dollar could provide another boost to tech earnings, according to one brokerage. "More recent moves in the dollar have also tended to be quite good for the S&P 500 because of the large weighting of Information Technology, Healthcare and consumer revenues from overseas," said analysts at brokerage Jefferies, in a research note. -Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

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January 29, 2018 16:35 ET (21:35 GMT)