The Dow Jones Industrial Average (DJINDICES: ^DJI ) was down nearly eight points as of 11:30 a.m. EDT. Intel (NASDAQ: INTC ) was one of the index's biggest losers, but other tech stocks, including Electronic Arts (NASDAQ: EA ) and particularly King Digital (NYSE: KING ) were moving to the upside.
ISM PSI beats expectations
According to the Institute for Supply Management, purchasing managers in the nonmanufacturing sector are experiencing a stronger U.S. economy than economists had expected.
The ISM's nonmanufacturing PMI for April came in at 55.2 on Monday, a bit better than the 54.1 that had been anticipated. Better than expected survey results suggest a stronger U.S. economy, and therefore a stronger stock market. Nevertheless, investors appeared to be overlooking that data point on Monday.
Intel in your Chromebook
Intel, which was down nearly 1% in late-morning trading, will make an announcement on Tuesday concerning Chromebooks, the increasingly popular Web-based alternative to Windows PCs and Macs. Over the last year, sales of Chromebooks have grown dramatically; though they remain a small percentage of the overall PC market, they are particularly favored by a number of institutions, particularly in education.
Most Chromebooks, however, do not use Intel's chips. Given that Intel's business is largely dependent on the creation of computing processors, it seems likely that Tuesday's announcement will involve some initiative designed to get Chromebook manufacturers to use Intel parts. Investors in the tech giant should keep an eye out for Intel's announcement tomorrow.
Electronic Arts to report earnings
Electronic Arts on Tuesday will release earnings results for the last quarter. Electronic Arts had a number of major releases last quarter, particularly Titanfall.
Titanfall was, for the first few weeks of its release, restricted to Microsoft's Xbox One console, which could affect sales given the Xbox One's lackluster performance compared to its major rival, the PlayStation 4.
The days of Electronic Arts depending on the console manufacturers could eventually come to an end -- according to Reuters, the company has been working with a major cable provider to create a Web-based service that would deliver Electronic Arts' games directly to gamers through their cable boxes. Such an initiative could provide a new revenue source for Electronic Arts.
King Digital rises on upgrades
King Digital, the creator of Candy Crush, was seeing a noticable 6.7% appreciation after at least nine banks initiated coverage on King Digital, including Stifel Nicolaus, Credit Suisse, and Pacific Crest. With the exception of Piper Jaffray, all the iniatiting analysts gave King Digital a rating of buy, overweight, or outperform, with price targets far above King Digital's current trading price.
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