The Dow Jones Industrial Average (DJINDICES:^DJI) had fallen 39 points as of 11:30 a.m. EDT. Microsoft (NASDAQ:MSFT) was one of few Dow Jones components in the green, while fellow tech stocks MICROS Systems (UNKNOWN:MCRS.DL) and PLX Technology (UNKNOWN:PLXT.DL) also posted notable moves to the upside.
Dow slumps despite economic data
The sell-off in the Dow Jones came despite some better-than-expected economic data.
According to the National Association of Realtors, existing-home sales rose 4.9% in May to a seasonally adjusted annual rate of 4.89 million, handily beating the 2.2% increase that economists had expected. The strength of the U.S. housing market is widely seen as a measure of economic strength. Increasing home sales suggest the labor market is improving -- a good sign for the U.S. economy and, by extension, the stock market.
Microsoft defies Dow sell-off
Microsoft shares rose 0.2% early in the session. But there wasn't much news to explain Microsoft's rise.
Late last week, Microsoft's Surface Pro 3 went on sale to the public. The third version of the Surface tablet is, in many ways, the perfection of Microsoft's original vision -- one device that doubles as both a laptop and a tablet. Reviews of the device have been mixed. While most agree that the Surface Pro 3 is the best Surface system yet released, there is still some skepticism that a tablet can truly replace a laptop.
Avago acquires PLX Tech
PLX Tech shares rose more than 9% early on Monday after Avago announced that it would acquire the company for about $300 million in cash. The deal values PLX Tech shares at about $6.50.
PLX Tech develops PCI Express technology, an interface commonly used in traditional PCs. Avago likewise specializes in tech components, and the combined company will have a larger portfolio of products to offer in the space.
Oracle buys MICROS
MICROS shares rose more than 3.4% early on Monday after Oracle announced that it would acquire the company for $5.3 billion in cash. MICROS develops software used in restaurants and other hospitality businesses, powering the terminals that servers use to input customer orders. Oracle's offer values MICROS shares at $68.
Cantor Fitzgerald reacted positively to the news, saying the deal opened up a healthy opportunity for Oracle in the food and beverage space. Cantor maintained its buy rating on Oracle with a $50 price target.
Sam Mattera has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.