The Tech sector gapped down this morning as investors returned after an unexpected long weekend following hurricane which has shaken the U.S. in the past two days. U.S stocks closed for the second consecutive day on Tuesday, which was the first 2-day shut down after 1888.
Back to the markets update, there are two heavy weights which are putting selling pressure on the entire index - Apple Inc.(NASDAQ:AAPL) and Facebook Inc(NASDAQ:FB). NASDAQComposite (INDEXNASDAQ:.IXIC) slid -16.24 (-0.54%) to 2,971.71.
Shares of Apple Inc fell 2.20% to $590.86 as investors surprised by the company’s announcement to remove Chief Scott Forstall, who was responsible for the development of the new mapping software that was widely criticized and retail chief John Browett, who recently created a controversy when he decided to reduce the number of retail store employees.
However, during the weekend, analysts were of view that the recent reshuffling of management team should not be a concern for the world’s largest company by market value.
In other news, the company won an approval from Chinese regulatory authorities, which would allow the company to start selling its iPhone 5 now. The company is expected to launch by the end of this year.
Facebook Inc(NASDAQ:FB) shares tumbled 34%, although off session low of $20.73. This Monday, the company’s another round of expiration of lock in. However, as Monday was a holiday, there could be some sort of divestment in today’s session. About 229 million shares are scheduled to hit the market, which is hard enough to the company.
Other social media stock is showing selling pressure along with Zynga Inc(NASDAQ:ZNGA) slumped 4.33%. The stock had solid week after the company posted higher than estimated revenue for the latest quarter, pushed its shares up 13% in a single day.
Microsoft Corporation(NASDAQ:MSFT) is bucking the market trend and rose 1.51% to $28.64 on heavy trade. The stock is getting boost from the company’s launch of Windows 8 and Windows Phone 8 operating systems.
Netflix, Inc.(NASDAQ:NFLX) shares are showing volatile move this morning and recently rose 2.50% to $71.31 after falling 85 in early session. On Friday, the stock rose 13% on rumors circulating among market participants that the company could be an acquisition target and the interested party could be Microsoft. Let’s see how things will go on with the struggling company, whose shares have slumped over 75% from its life time peak.
Baidu.com, Inc. (ADR)(NASDAQ:BIDU) shares gapped down this morning as the company’s China’s so called Google issues lackluster outlook for the fourth quarter. The company projects to generate revenue of $979.3 million to $1.010 billion, compared to analysts’ target of $1.03 billion.
For the third quarter, the company posted $1.39 a share on revenue of $994.6 million, compared to analysts’ estimmates of $1.28 a share on revenue of $1.00 billion.