Tech Stocks: Microsoft, Netflix rise, but Apple falls again

SAN FRANCISCO (MarketWatch) � The technology sector turned mostly higher on Friday, buoyed by solid gains from shares of Microsoft Corp., Netflix Inc. and chip makers, but shares of Apple Inc. again were in the red.

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The Nasdaq Composite Index COMP �traded up 19 points, or 0.6%, to 3,150. The benchmark ended the week with a fractional gain.

The sector got a lift from Microsoft Corp. MSFT , shares of which recovered from a wobbly start, rising 1% to close at $27.88.

The move came after the software giant posted mostly in-line financial results for the second quarter late Thursday. The stock was among the best performers in the Dow Jones Industrial Average DJIA , which was up 71 points.

On the other hand, Apple AAPL �shares continued to be volatile following the company�s disappointing report issued late Wednesday. The stock traded down 2.4% to close at $439.88, after Goldman Sachs cut its price target by $100.

In a note, Goldman wrote: �The problem, and the key disappointment in the call, was that management made it pretty clear that it was moving toward providing more realistic guidance. In this case, the guidance was a definitive disappointment.�

At the same time, the investment bank kept Apple on its conviction-buy list, citing �our optimism that new products in the coming months will reinvigorate new user growth, with a sticky installed base serving as a baseline for valuation support.�

Also Friday, the chip sector was in rally mode with the Philadelphia Semiconductor Index SOX �gaining 1.3%, as KLA-Tencor Corp. KLAC �saw its stock soar 8.4% to close at $56.34 after the semiconductor equipment company posted second-quarter results that beat expectations.

/quotes/zigman/87598/quotes/nls/nflx NFLX 169.56, +22.70, +15.46%

Fellow chip company Cirrus Logic Inc. CRUS �saw its shares jump 10% to close at $29.42, after posting a big jump in third-quarter profit on surging sales. Cirrus Logic is a supplier to Apple and its stock took a hit after the iPhone maker report disappointed Wall Street.

But in a note, Canaccord Genuity analyst Bobby Burleson reiterated a buy rating, saying the stock �remains attractively valued, and we expect strong revenue growth in the September and December quarters on new product launches by Apple.�

Netflix NFLX �rose again, gaining 15.5% to close at $169.56. The video-streaming company surprised investors on Wednesday with better-than-expected results for the fourth quarter.

Also on the rise were shares of Juniper Networks Inc. JNPR , which traded up 5% to close at $22.57, after the maker of networking gear reported better-than-expected results.