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Analyst Watch: The Fourth Quarter Belongs to Tech

The market looked to take a breather from the previous week's rally as investors returned from the Labor Day holiday Tuesday. Futures slipped following weak performance in Europe on renewed bank stress test concerns.

Here's what analysts and others are watching before the bell:

Jordan Posner, managing director and senior portfolio manager at Matrix Asset Advisors, says the firm is bullish on tech for the remainder of the year, "and our portfolios are meaningfully overweighted versus our benchmark."

"The corporate technology refresh cycle is well under way due to the installed base," he says. "New products, like Windows 7, Office 2010, iPad and other tablet computing devices are creating demand from end users, beyond just consumers."

There's also the seasonal factor of holiday shopping to consider, along with the fact that technology has proven itself a big productivity lever, an important factor in a sluggish economy he says.

So which companies will stand out?

"Our focus is always on company fundamentals and valuation, not hype or momentum," Posner says. "Stocks that are most exposed to corporate computing demand will see the best sales performance, which will lead to better operating leverage and profit gains.

Specifically, Posner likes:

Dell
Cisco
Microsoft
Analog Devices
EBay
Corning


See more of what analysts and money managers have to say, and get the latest financial news. Watch Squawk on the Street every weekday morning starting at 9 a.m. ET.

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Disclosure: Matrix, their clients, the mutual fund (Matrix Advisors Value Fund - MAVFX), Posner and his family own all the stocks mentioned above.

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Disclaimer

Symbol
Price
 
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ADI
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CSCO
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4331
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EBAY
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GLW
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MSFT
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