TIME TO TAKE IN SOME TECH

11/10/2007 5pm CT

By Dave Harris

What to buy in a market like this? We have a stock market still spooked by the credit crunch and the financial segment beaten down by the subprime mortgage mess. Sky-high oil prices aren't helping either. Recent economic data has been downbeat, with lower consumer sentiment and poor same-store sales numbers from most retailers. Some of the losers include Nordstrom (JWN), which had terrible results and said sales fell by 2.4 percent. Macy’s (M) reported a 1.5 percent decrease. And worst of all, the Gap (GPS), announced an 8 percent same-store sales decline. A couple of bright spots include Target (TGT), with over a 4 percent increase in same-store sales. Costco (COST) also looks good here with a sales increase of nine percent.

Now, the techs have been the market leaders of late, and I believe the recent pullback is pure profit taking. Now is your chance to snatch some Google (GOOG), which closed down 29.87 on Friday to 663.97 per share. Days ago, this stock was in the $740's! Apple (AAPL) lost 10.10 to close at $165.37. Microsoft (MSFT) fell 1.01 to $33.73 per share. All of these stocks should be bought here.

On Friday, the entertainment company Disney (DIS) said the 4^th quarter rose 12 percent. Results were pretty good, and I'm pretty impressed with the theme park attendance numbers and consumer products segment. Unfortunately, the company may hurt from the Writers Guild strike. But such concerns are temporary, and I suggest buying the stock here on the weakness. Disney closed down .89 to $32.74.

This Monday the bond markets are closed for Veterans Day, but the stock market is still open. We'll get earnings this week from the likes of Bob Evans (BOBE) on Monday (I loved those biscuits and gravy!) and the recently publicly issued private equity company Blackstone Group (BX). Tuesday some retailers are in focus with Home Depot (HD) and Wal-Mart (WMT) reporting. Thursday, Kohl's (KSS) and Williams-Sonoma (WSM) open their books.

Also in the coming week expect further volatility as Wall Street gets some important inflationary indicators in the form of wholesale and consumer inflation, namely the PPI and CPI. Later in the week it's initial jobless claims and industrial production.

Meanwhile, buy those tech names like Google (GOOG), Apple (AAPL), Microsoft (MSFT) and Cisco (CSCO). You won't be disappointed.