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Power Play: Time to downgrade tech

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Technology is lagging the major averages so far in the second quarter, with the sector falling 5 percent since April 1.

Gina Martin Adams, institutional equity strategist at Wells Fargo Securities, tells CNBC's "Power Lunch" on Monday her firm recently downgraded tech to market weight from overweight.

"We are downgrading tech to market weight on emerging sector related economic and earnings weakness and deteriorating price momentum," Adams said.

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Within tech, Adams is staying away from hardware, storage and peripherals.

"IT software and services remains a bright spot for tech, with double-digit earnings growth, but much of the rest of the sector appears to be struggling with the global slowdown in tech sales," Adams said.

Tech is modestly higher during trading.