Tech Up As Earnings Spur Rotation Back Into Sector -- Tech Roundup

Shares of technology companies rallied as investors rotated back into the growth sector, based on earnings optimism.

In recent weeks, optimism about a series of fiscal stimulus packages had spurred a rotation out of the tech sector into sectors more sensitive to shifts in the U.S. economic growth rate, including materials and industrials.

But strong earnings from Netflix have inspired a return to the tech sector, with investors piling into mega caps such as Apple, Intel and Amazon.com once more.

"The first big tech earnings report from Netflix impressed," said Edward Moya, senior market analyst at foreign-exchange brokerage OANDA Group, in a note to clients.

Shares of Intel, the troubled chip giant that recently named a new chief executive, rose by more than 4% ahead of its earnings report. In the wake of the report, Intel shares fell slightly in late trading, despite reporting earnings ahead of Wall Street targets.

Shares of Apple rose by more than 3% Thursday to close at a new record high. The price of digital currency Bitcoin, another investment that's become very popular in recent months, tumbled after rumors circulated of a flaw in the design of the cryptocurrency.

Write to Rob Curran at [e-mail]

(END) Dow Jones Newswires

01-21-21 1716ET