TEF, ASML And EMR, Pushing 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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 29 points (-0.2%) at 16,918 as of Monday, June 23, 2014, 1:00 PM ET. The NYSE advances/declines ratio sits at 1,480 issues advancing vs. 1,509 declining with 147 unchanged.

The Technology sector currently sits down 0.1% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the sector include NTT DoCoMo ( DCM), down 2.1%, Infosys ( INFY), down 2.0%, Telecom Italia SpA ( TI), down 2.0%, Telecom Italia SpA ( TI.A), down 1.9% and Wipro ( WIT), down 1.5%. Top gainers within the sector include Groupon ( GRPN), up 6.2%, 3D Systems ( DDD), up 5.6%, Alcatel-Lucent ( ALU), up 2.5%, Eaton ( ETN), up 2.4% and VimpelCom ( VIP), up 1.6%.

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

3. Telefonica ( TEF) is one of the companies pushing the Technology sector lower today. As of noon trading, Telefonica is down $0.12 (-0.7%) to $17.28 on light volume. Thus far, 334,041 shares of Telefonica exchanged hands as compared to its average daily volume of 990,400 shares. The stock has ranged in price between $17.26-$17.33 after having opened the day at $17.31 as compared to the previous trading day's close of $17.40.

Telefonica, S.A. provides fixed and mobile communication services primarily in Europe and Latin America. The company offers mobile voice, mobile data and Internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services. Telefonica has a market cap of $79.1 billion and is part of the telecommunications industry. Shares are up 6.5% year-to-date as of the close of trading on Friday. Currently there are no analysts that rate Telefonica a buy, 2 analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Telefonica as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins. Get the full Telefonica Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

2. As of noon trading, ASML ( ASML) is down $1.91 (-2.0%) to $92.89 on average volume. Thus far, 532,248 shares of ASML exchanged hands as compared to its average daily volume of 961,100 shares. The stock has ranged in price between $92.25-$92.97 after having opened the day at $92.50 as compared to the previous trading day's close of $94.80.

ASML Holding N.V. designs, manufactures, markets, and services semiconductor processing equipment used in the fabrication of intercircuits worldwide. ASML has a market cap of $41.2 billion and is part of the electronics industry. Shares are up 1.2% year-to-date as of the close of trading on Friday. Currently there are 7 analysts that rate ASML a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates ASML as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full ASML Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

1. As of noon trading, Emerson Electric ( EMR) is down $0.36 (-0.5%) to $67.88 on light volume. Thus far, 1.1 million shares of Emerson Electric exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $67.87-$68.67 after having opened the day at $68.47 as compared to the previous trading day's close of $68.24.

Emerson Electric Co., a diversified technology company, designs and supplies products and technology, and delivers engineering services and solutions to the industrial, commercial, and consumer markets worldwide. Emerson Electric has a market cap of $47.4 billion and is part of the industrial industry. Shares are down 2.8% year-to-date as of the close of trading on Friday. Currently there are 5 analysts that rate Emerson Electric a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Emerson Electric as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Emerson Electric Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you are interested in one of these 3 stocks, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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