Technology Sector Update for 03/13/2018: QCOM,AVGO,SPEX,CNIT

Top Tech Stocks

MSFT -1.88%

AAPL +0.08%

IBM -0.30%

CSCO -0.34%

GOOG -1.37%

Technology stocks were mostly lower Tuesday, with shares of tech companies in the S&P 500 adding almost 0.4% in value while the Philadelphia semiconductor index was posting a more than 0.3% decline.

Among technology stocks moving on news:

– Qualcomm’s ( QCOM ) tumbled almost 6% lower on Tuesday, sliding to a session low of $59.13 a share, after Broadcom’s ( AVGO ) proposal takeover of the specialty chipmaker was blocked by President Doanald Trump, citing “credible evidence” the deal “threatens to impair the national security of the United States. In a statement, Broadcom last night said it was reviewing the order, adding it “strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns.” Qualcomm ( QCOM ) also confirmed receiving the presidential order, which comes more than a month after Broadcom issued its “best and final” offer of $82 a share for Qualcomm, consisting of $70 in cash and $12 in Broadcom stock for each Qualcomm share.

In other sector news:

+ Spherix ( SPEX ) was surging Tuesday, jumping over 86% to a session high of $2.42 a share, after the technology development company announced its acquisition of privately held DatChat. Financial terms of the transaction for the personal privacy platform focused on encrypted communications were not disclosed. Closing of the acquisition remains subject to shareholder approval and other customary conditions.

– China Information Technology ( CNIT ) was almost 1% lower in mid-day trading, recovering somewhat from a nearly 3% decline earlier in Tuesday’s session, that followed the internet services company saying it received a new $500,000 contract to install 1,500 of its cloud-based advertising terminals in office buildings and residential communities throughout Hezhou, a city in the Guangxi Autonomous Region connecting three provinces. The company Tuesday also reiterated its forecast of selling another 120,000 of its cloud-based ad terminals during 2018 in around 100 cities and reaching a potential 200 million people throughout China.