HEXUS.sharewatch: ARM best performer in resilient markets

After observing the potentially Lehman-esque nature of the worries surrounding sovereign debt in some European countries we expected today's HEXUS.sharewatch to document a massive sell-off last week. However, it turns out that it takes a bit more than Greeks requiring gifts to make tech investors beware.

A big reason for this will be better than expected US unemployment figures. Markets had been preparing for the worst all week, it seems, and cheered up on Friday when it didn't come to pass. The other reason tech stocks aren't getting too hammered is that most tech companies are doing quite well.

Last week we brought you the news that UK low power chip designer ARM was about to enter the FTSE 100, to fill the void left by recently-acquired Cadbury. Well, it's joining the UK's 100 biggest companies with a bit of momentum behind it. Could it be that ARM is benefitting from continued speculation about how much of its IP is used in Apple's new A4 SoC? Exceeding expectations with its earnings probably has more to do with it.

Another tech company that had a great week was Cisco, which announced results and guidance well above expectations last Thursday. Initial reaction was muted, as the aforementioned macroeconomic factors continued to inhibit investors, once they realised the worst hadn't happened (yet), Cisco's gained on the Friday.