Stocks surged Wednesday, after slipping to start the week,
with the tech-heavy Nasdaq up above 11,000 once again. The mid-week gains were
once again driven by the tech titans, including Apple AAPL, Amazon AMZN, and
Microsoft MSFT.
Tesla TSLA also soared after it announced a 5-for-1 stock
split to help make its shares more attractive to a wider range of
investors—Apple announced a split at the end of July. Advanced Micro Devices
AMD, Nvidia NVDA, and other recent tech standouts jumped as well.
The positivity marks the extension of the technology
sector’s massive run off the market’s March bottom, as the tech space proves
increasingly resilient to the coronavirus economic downturn. Wall Street has
also been pleased with the better-than-expected second quarter earnings
results, along with the improving third quarter outlook.
In recent weeks, there have been more calls about a
transition out of tech into undervalued cyclicals, such as travel and leisure,
financials, and energy. The move into some of those areas could pay off for
investors and it’s a bet on the continued reopening of the economy, as people,
businesses, and Wall Street learn to live with the coronavirus.
There are some legitimate valuation concerns on the tech
front. But with the don’t fight the Fed mantra etched into the market,
cyclicals could start to climb without causing a major tech pullback.
Yet now might be time to be a bit more selective when it
comes to buying tech stocks. So today we look at three tech stocks that pay a
dividend and are poised to grow during the pandemic and beyond…
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