Tech stocks are taking a bit of a tumble today as a consolidation move from the gains we saw earlier in the week. 

Here’s how the day shook out across a variety of sectors: 

Even with red days like this, it’s tough to make a bear case that will stop the tech train. 

As I write to you today, the Nasdaq is down a little over 1.5%, but up over 4% on the week as a whole. 

Even better yet, the Nasdaq remains solid in double-digit gains territory at nearly 16% up on the year. 

Sure enough, tech has come roaring back into focus following last year's breakdown. 

Just yesterday we saw some neck-breaking follow-through in the market with many mega-cap names ripping higher. 

A lot of this week’s momentum comes thanks to The Fed effectively getting off the market’s back. 

Now, buyers are stepping up and squeezing hard on some of last year’s worst-performing names. 

This action has pushed some of last year’s losers ahead to become this year’s winners. All in all, there are a lot of positives in the tech world right now.

However, in the short term, the market was a little overheated and a handful of FAANG earnings reports are weighing heavily on stocks today. 

Alphabet (NASDAQ: GOOG), Apple Inc. (NASDAQ: AAPL), and Amazon.com (NASDAQ: AMZN) all posted disappointing results. 

So far, Amazon is taking the biggest hit of the bunch, down over 8% as I write this. Alphabet isn’t far behind with a decline of nearly 4% on the day. 

And then, interestingly enough, you have Apple, who posted its first revenue decline in four years, up over 2%. 

No shortage of interesting tech stories out there right now that’s for sure… 

And while this may seem like a negative as far as tech is concerned, there’s a silver lining attached. 

A lot of these names were extended too far, a bit of consolidation from here is a positive moving forward. 

With this action, we can now take a closer look at which names are looking to perform the best in the coming weeks. 

Earnings aside, we also got a jobs report today… 

In the report, it was stated that the U.S. economy added 517,000 jobs last month, far more than the payroll gain of 188,000 expected by economists. This puts the unemployment rate down to 3.4%, the lowest it’s been since 1969.

However, that data has seemingly been buried with everything else going on in the market this week. 

Now into the second month of the year, I’m still feeling optimistic about the outlook for technology stocks and I think we have plenty of room left to run following today’s consolidation.