Microsoft, Zynga, and Logitech Lead Tech Lower as Dow Jones Falls

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) was dropping in morning trading Thursday, shedding more than 85 points as of 11:30 a.m. EST. Dow component Microsoft (NASDAQ: MSFT  ) was underperforming its index, and shares of fellow tech stocks Logitech (NASDAQ: LOGI  ) and Zynga (NASDAQ: ZNGA  ) were also posting notable declines.

Inflation in line with expectations
Inflation data released early on Thursday showed that prices in the U.S. were rising about as fast as economists expected. Core CPI, a measure of inflation that excludes the cost of food and energy, rose 0.1% on a month-to-month basis. On a year-over-year basis, it was up 1.7% -- also in line with what economists had anticipated.

With inflation in check, the Federal Reserve may be less likely to further reduce its asset purchase program in the months ahead. Still, investors seemed to be ignoring that possibility on Thursday as the Dow Jones fell.

A new candidate emerges for Microsoft CEO spot
The emergence of possible new candidate to replace outgoing Microsoft CEO Steve Ballmer failed to push the tech giant's stock up. Microsoft, down 1%, is said to be considering Ericsson CEO Hans Vestberg, according to Bloomberg. Vestberg's name comes as somewhat of a surprise, as the focus had centered around Microsoft insiders including Satya Nadella, Stephen Elop, and Tony Bates. 

Vestberg has an established track record in the wireless industry, and if named CEO might be able to help Microsoft's struggling handset business.

Logitech shares fall as Best Buy disappoints
Logitech shares were down nearly 6%. There wasn't much news to explain Logitech's decline, but Best Buy's poor holiday results may have had some effect. Best Buy shares were down as much as 30% early on Thursday after the electronics retailer released its holiday results. Best Buy's fall was mostly due to margin concerns, but management said the consumer electronics market has been weaker than expected.

Logitech is primarily a manufacturer of PC, mobile, and gaming accessories -- all products sold in Best Buy stores. If Best Buy had a difficult holiday season, it's possible that Logitech may have had one as well.

Zynga stumbles after shutting down game
Zynga shares were down more than 8% early on Thursday. The drop follows the online game company's decision to shut down its YoVille game, one of its oldest titles. 

Zynga shares may have also been hit by comments from Sterne Agee. The firm maintained its neutral rating on Zynga, but said it saw some poor traffic trends for Zynga's key titles. Sterne Agee warned that Zynga could miss consensus earnings estimates in the coming quarters. 

Get our top stock pick for 2014
There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2797842, ~/Articles/ArticleHandler.aspx, 8/22/2014 1:45:09 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement