The Department of Labor’s jobless-claims report was released this morning, and it wasn’t what investors were hoping for. Economists were expecting 350,000 claims last week, but the report indicated that the number was actually 385,000, which is 28,000 claims higher than the previous week. The 385,000 claims also represented the highest number of first-time claims in nearly four months.
But despite that dour data point, the Dow Jones Industrial Average (Dow Jones Indices:.DJI) is clinging to a 12-point gain as of 12:55 p.m. EDT. The S&P 500 (S&P Indices:.INX) is up 0.12%, and the NASDAQ is performing worst, having lost 0.15%.
The Dow’s biggest loser today is International Business Machines Corp. (NYSE:IBM), down 0.9%. And because Big Blue is the Dow’s most heavily weighted stock, its downward pressure is having a large effect on the blue-chip index. My Fool colleague Jessica Alling noted this morning that the company has been attempting to downplay an independent study indicating that Oracle Corporation (NASDAQ:ORCL)‘s new chips and servers outperformed those produced by International Business Machines Corp. (NYSE:IBM). The company has long been seen as the top dog in the server realm, but it may now be losing some of its luster.
Another big technology Dow component losing today is Cisco Systems, Inc. (NASDAQ:CSCO). Investors have cut the share price by 0.19% just a day after Cisco Systems, Inc. (NASDAQ:CSCO) announced that it would be purchasing the mobile connectivity company Ubiquisys. The privately held company provides technology which allows users to seamlessly connect across mobile networks. The $310 million purchase of Ubiquisys will allow Cisco Systems, Inc. (NASDAQ:CSCO) to offer increased cellular data capacity in a more cost-effective way. To learn more about Cisco Systems, Inc. (NASDAQ:CSCO)’s purchase and how it will help the company move one step ahead of the competition, click here.
Shares of Microsoft Corporation (NASDAQ:MSFT) have fallen 0.44% thus far today. The decline comes after a Bank of America/Merrill Lynch downgraded the stock from a “buy” to “neutral”. The analyst making the call noted that the Windows product cycle has not performed as well as some had expected and that the company’s stock buyback program has failed to give the share price a boost.
The article Tech Stocks Fight the Rising Dow originally appeared on Fool.com and is written by Matt Thalman.
Fool contributor Matt Thalman owns shares of Microsoft. The Motley Fool recommends Cisco Systems (NASDAQ:CSCO). The Motley Fool owns shares of International Business Machines (NYSE:IBM). and Microsoft. Check back Monday through Friday as Matt explains what caused the Dow’s winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter: @mthalman5513.
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