3 Stocks Pulling The Technology Sector Downward

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 16 points (0.1%) at 16,733 as of Monday, June 2, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,394 issues advancing vs. 1,564 declining with 187 unchanged.

The Technology sector currently sits down 0.7% versus the S&P 500, which is unchanged. On the negative front, top decliners within the sector include STMicroelectronics ( STM), down 3.1%, LinkedIn ( LNKD), down 3.0%, American Tower ( AMT), down 1.6%, LM Ericsson Telephone Company ( ERIC), down 1.4% and Amazon.com ( AMZN), down 1.4%. Top gainers within the sector include Broadcom ( BRCM), up 9.6%, Infosys ( INFY), up 1.9%, Kyocera ( KYO), up 1.9%, Telecom Italia SpA ( TI.A), up 1.5% and Applied Materials ( AMAT), up 1.0%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. Alcatel-Lucent ( ALU) is one of the companies pushing the Technology sector lower today. As of noon trading, Alcatel-Lucent is down $0.13 (-3.2%) to $3.88 on heavy volume. Thus far, 7.2 million shares of Alcatel-Lucent exchanged hands as compared to its average daily volume of 9.2 million shares. The stock has ranged in price between $3.88-$3.92 after having opened the day at $3.91 as compared to the previous trading day's close of $4.01.

Alcatel-Lucent provides Internet protocol (IP) and cloud networking, and ultra-broadband fixed and wireless access to service providers and their customers, enterprises, and institutions worldwide. The company operates in three segments: Core Networking, Access, and Other. Alcatel-Lucent has a market cap of $11.3 billion and is part of the telecommunications industry. Shares are down 8.9% year-to-date as of the close of trading on Friday. Currently there are 3 analysts that rate Alcatel-Lucent a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates Alcatel-Lucent as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow. Get the full Alcatel-Lucent Ratings Report now.

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