Reassuring comments on interest rates and solid financial results from
Dell were not enough to turn the Nasdaq around last week, continuing its
recent bout of weakness. Federal Reserve Chairman Alan Greenspan's comments
that the Fed can be patient in raising interest rates encouraged buying
action. In his semi-annual congressional report on monetary policy, Greenspan
also commented that the U.S. economy's "odds of sustained robust growth are
good." Peter Dunay, chief market strategist at Wall Street Access, remarked to
Reuters News, "When you take Greenspan's comments, a pick-up in business
spending and some deals in the past few days, it sets up a lot of positives...
The combination of everything here is just going to push the market higher, as
long as there is no major cataclysm." On the corporate front, Dell reported a
24% leap in its quarterly net income on strong demand for products such as
notebook computers and data storage systems. The firm also forecast current-
quarter results that are in line with Street expectations. Rick Meckler,
president of LibertyView Capital Management, commented to Reuters News, "I
think the Dell news was a little bit of a relief for people... There's been
some concern about the PC market in general and whether prices have gotten a
little bit ahead of themselves in technology." Tech reports were not all that
sweet though. Hewlett-Packard was not embraced by the Street, even though it
said its first-quarter earnings should be in line with expectations. Computer
Sciences Corporation also tumbled, after it indicated it might miss the
average analyst estimate in the current quarter, while Sonus Networks slumped
on word its auditors are investigating its prior revenue reporting practices.
This week, investors will have a healthy dose of both earnings and economic
reports to digest with their Valentine chocolates.
High-Tech Monday Update is provided courtesy of Thomson Financial. This
information is believed to be true and accurate; we take no responsibility for
inaccurate information and reserve the right to update our reports. For more
information, please visit our web site at http://www.thomson.com/financial.
SOURCE Thomson Financial
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