Software companies have sold off aggressively but some information technology managers have indicated a willingness to spend in that area.
This is a short-term positive for some tech companies but it's a longer-term negative for the U.S. economy.
A lot of investors have been conditioned to expect surprises on the upside from tech companies so when they see companies just meet expectations they get nervous.
A lot of these speculative names have rallied more than blue chip tech companies only because they were punished a bit too much on the downside.
A lot of these companies have finally started to reach full valuation, and there really haven't been any significant changes in the fundamentals to justify it. There's just a lot of profit taking.
It'll take another round of earnings to confirm some of the optimism that's been going around. And I don't know that I would say all the news was necessarily good. A lot of companies beat much-lowered expectations and didn't necessarily have rosy outlooks.