Stocks fell on Thursday as the market digested mixed economic data and earnings reports, and high-growth software stocks underperformed the broader Nasdaq index. Here are some of the top tech stock movers for Thursday, July 16.
Shares of Dell (DELL) - Get Report rose 13.9% to $59.99 on a strong market response to a possible spin-off of VMware. Dell owns an 81% stake in VMware, but told investors on Wednesday that it is exploring a spin-off of the asset, saying that a deal "could benefit both Dell Technologies and VMware shareholders, team members, customers and partners by simplifying capital structures and creating additional long-term enterprise value."
Shares of VMware (VMW) - Get Report also rose as much as 3.3% following the announcement, before falling to $141.74 as of mid-day. VMware, which sells virtual machinery to enterprises, reported 12% revenue growth to $2.8 billion in its most recent earnings report. Its stock has slipped 9% this year.
Software giant Salesforce (CRM) - Get Report fell $182.01 on Thursday, continuing a days-long selloff trend affecting many high-growth, high-multiple tech names. According to Jim Cramer, economic indicators may be driving investors away from "super-growth stocks" and towards traditional Dow Jones holdings, at least temporarily, because those holdings tend to do well when the economy turns around.
Likewise, shares of Adobe (ADBE) - Get Report fell 2.8% to $420.78 as of mid-day Thursday, having outperformed the market for much of this year. In its most recent earnings report, Adobe beat top and bottom line expectations but withdrew its full-year guidance owing to COVID-related uncertainty.
Shares of Intuit (INTU) - Get Report were falling 2.7% to $282.02. Intuit, which sells financial and tax preparation software, identified business closures, payroll reductions and rising unemployment as potential headwinds for the business in its most recent earnings release.