Technology Sector Is 'Cause For Concern,' CNBC's Gordon Warns
NEW YORK (TheStreet) -- A near-term worry for the market is technology, Trading Analysis founder and CNBC contributor Todd Gordon said on "Squawk Box" Wednesday morning.
"I feel confident in the direction of the market. The market right now is being led by energy, materials, industrials. We have these sectors driving us forward. My cause for concern in the near term is technology," Gordon stated.
The "breadth in this market is strong" which makes Gordon "want" to be bullish, but "technology has not been performing on the upside" in volume accumulation.
"I'm personally long emerging markets. I like the transports coming back, the railroads, everything is firing except technology," Gordon continued.
However, Microsoft's (MSFT) - Get Report 2016 fiscal fourth quarter earnings beat could pull the sector back together, he noted.
After yesterday's closing bell, the tech giant reported fourth quarter adjusted earnings of 69 cents per share, slamming analysts' expectations of 58 cents per share. Microsoft posted revenue of $22.6 billion, above Wall Street estimates of $22.2 billion.
"With Microsoft, we might now have technology joining the party here," Gordon commented.
Shares of Microsoft are spiking by 6.25% to $56.41 this morning.
Separately, TheStreet Ratings rated Microsoft as a "buy" with a score of B+.
This is driven by several positive factors, which can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: MSFT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.