Check out the traffic on Highway 101. It has a good correlation with Nasdaq. Although the corporate balance-sheet is strong, the long-awaited business spending has eluded the technology sector. While consumer spending on technology has been strong, business spending on technology has remained a laggard. With slowing productivity growth and rising labor cost business is ramping up their technology spending. Wall Street journal has an article on technology sales surge in its July 21st publication. The article highlights the growth in information-technology spending with increasing shift towards software related spending. IBM, Microsoft, Oracle and SAP stocks are seeing a great deal of buying interest.
With the Financial sector bogged by sub-prime worries and the Energy sector having a good run over the last few months is it time for Technology sector to pick-up the baton for this mature bull to charge higher?
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