Market/Sector Trends
11/18/2009 11:39 AM ET
(RTTNews) -
After trending higher in recent sessions, electronic storage stocks are giving back some ground during trading on Wednesday. Seagate Technology (STX) is helping to lead the sector back to the downside following an analyst downgrade.
The weakness in the electronic storage sector is reflected by the 1.8 percent loss currently being shown by the NYSE Arca Disk Drive Index. Despite the pullback, the index remains stuck in a three-month trading range.
Within the sector, Seagate Technology is turning in one of the worst performances, with the hard drive maker currently posting a 5.1 percent loss. With the drop, the stock is backing off of the sixteen-month closing high it set in the previous session.
The loss by Seagate comes after the company was downgraded at Bank of America, which lowered its rating on the stock to Underperform from Neutral. The broker cited the near peak in the stock's fundamentals as a reason for the ratings change.
Western Digital (WDC) is also moving lower, sliding by 2.1 percent. With the decline, the stock is backing further off of its best closing price in over a year, which it set on Monday.
The stock is also moving lower following a downgrade by Bank of America, which cut its rating on the stock to Underperform from Neutral, citing the firm's capacity expansion as a concern in the upcoming fiscal year.
On the other hand, STEC, Inc. (STEC) is moving higher in the sector, posting a gain of 2.4 percent. The advance is helping the stock to recover from the six-month closing low it set on Tuesday.
by RTT Staff Writer
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