Technology Stocks (ORCL, BRCM, WFR) HPQ) Take A Beating Today As Morgan Stanley Says Group Is Very Vulnerable

Today, Morgan Stanley recommended selling technology stocks, saying it’s the most vulnerable among economically sensitive groups.

In the research report, the Morgan Stanley analyst, Jason Todd said, " Sell the recent rally. Tech is a momentum sector where generally valuations alone are not enough to drive outperformance if earnings momentum is negative and valuations are just 'fair.'"

Todd has an "underweight" rating for technology shares such as Broadcom (Nasdaq: BRCM) and MEMC (NYSE: WFR). Both these stocks have taken a beating today with Broadcom falling 6.50% and MEMC dropping nearly 5%.

The Morgan Stanley analyst favors U.S. focused consumer companies including Wal-Mart Stores (NYSE: WMT) and Kroger Co. (NYSE: KR) instead of foreign-focused companies because of the strengthening U.S. dollar and deteriorating global economy.

Other technology stocks taking a beating today, include: Microsoft (Nasdaq: MSFT) down 4%, Oracle (Nasdaq: ORCL) down 4%, and Hewlett-Packard (NYSE: HPQ) down over 6%.

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