3 Stocks Dragging 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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 67 points (0.4%) at 16,436 as of Friday, Aug. 8, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,992 issues advancing vs. 961 declining with 169 unchanged.

The Technology sector currently is unchanged today versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the sector include Computer ( CSC), down 6.7%, SolarCity ( SCTY), down 3.9%, BT Group ( BT), down 2.0%, BCE ( BCE), down 1.4% and Cognizant Technology Solutions ( CTSH), down 1.4%. Top gainers within the sector include Mercadolibre ( MELI), up 14.7%, Youku Tudou ( YOKU), up 7.5%, NVIDIA ( NVDA), up 7.0%, Ubiquiti Networks ( UBNT), up 6.8% and KT Corporation ( KT), up 3.2%.

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

3. Telefonica Brasil ( VIV) is one of the companies pushing the Technology sector lower today. As of noon trading, Telefonica Brasil is down $0.23 (-1.2%) to $18.23 on average volume. Thus far, 1.0 million shares of Telefonica Brasil exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $18.19-$18.46 after having opened the day at $18.38 as compared to the previous trading day's close of $18.46.

Telefonica Brasil S.A. provides fixed-line telecommunications services to residential and commercial customers in Brazil. Telefonica Brasil has a market cap of $21.3 billion and is part of the telecommunications industry. Shares are down 4.0% year-to-date as of the close of trading on Thursday. Currently there are 4 analysts that rate Telefonica Brasil a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Telefonica Brasil as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share. Get the full Telefonica Brasil Ratings Report now.

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2. As of noon trading, ASML ( ASML) is down $0.89 (-1.0%) to $90.82 on average volume. Thus far, 465,714 shares of ASML exchanged hands as compared to its average daily volume of 981,100 shares. The stock has ranged in price between $90.18-$91.26 after having opened the day at $90.57 as compared to the previous trading day's close of $91.71.

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 $40.3 billion and is part of the electronics industry. Shares are down 2.1% year-to-date as of the close of trading on Thursday. Currently there are 6 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, notable return on equity, expanding profit margins and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full ASML Ratings Report now.

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1. As of noon trading, Taiwan Semiconductor Manufacturing ( TSM) is down $0.18 (-0.9%) to $19.73 on heavy volume. Thus far, 8.6 million shares of Taiwan Semiconductor Manufacturing exchanged hands as compared to its average daily volume of 10.5 million shares. The stock has ranged in price between $19.72-$20.03 after having opened the day at $19.97 as compared to the previous trading day's close of $19.91.

Taiwan Semiconductor Manufacturing Company Limited is engaged in manufacturing, selling, packaging, testing, and computer-aided designing integrated circuits and other semiconductor devices. It also manufactures masks. Taiwan Semiconductor Manufacturing has a market cap of $103.9 billion and is part of the electronics industry. Shares are up 14.2% year-to-date as of the close of trading on Thursday. Currently there are no analysts that rate Taiwan Semiconductor Manufacturing a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Taiwan Semiconductor Manufacturing as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, expanding profit margins and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Taiwan Semiconductor Manufacturing 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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