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Despite earnings disappointments and some wobbling by Apple, technology stocks remain the market's bedrock and likely safety valve should a summer swoon hit.
Tech led the stock market lower Wednesday as investors recoiled over earnings from Intel that, while beating profit estimates, fell short in gross margins outlook.
The damage spread across the sector's biggest names, with IBM tumbling and Apple , which has come off its lofty pedestal, continuing to show inclination to give back the meteoric gains it had seen since November.
But taken on balance, the group's strong cash position, innovation potential and expected growth mean it likely will remain a favorite for many investors.
After all, the earnings season, though still young, has has seen about 80 percent of companies in the space beat expectations, according to Mary Ann Bartels, technical research analyst at Bank of America Merrill Lynch.
"That's a big number during earnings season," Bartels said in an interview. "You're always going to have select disappointments. But as long as the aggregate is strong — in fact, it's been doing better than last quarter — that doesn't concern me."
Tech stocks have led the market rally a fairly large margin.
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