A rocky start to last week ended on an upbeat note, with technology stocks
playing a major part. Investors had plenty of geopolitical and corporate news
to sift through during the holiday-shortened week. Escalating violence in Iraq
caused serious investor concern, as U.S. and coalition forces battled Iraqi
insurgents in the Sunni Triangle and followers of a militant Shiite cleric.
Elsewhere, Nokia weighed heavily on tech stocks, after the firm warned that
its first-quarter net sales will be down 2% on the year, coming in below
guidance, due to its product mix and weak handset sales. "Nokia was the first
announcement that caught people by surprise," said William Dwyer, chief
investment officer at MTB Investment Advisors, to Reuters News. "But I don't
think it's the beginning of weaker earnings across the board." The news also
pulled down shares of chip makers Texas Instruments and RF Micro Devices.
However, RF Micro staged a comeback the following session, after the company
said sales in the current quarter will likely rise amid the strong cell phone
market. Seagate Technology also warned that its quarterly earnings would fall
short of its already reduced forecast. Still, not all guidance was
disappointing. Andrew Corp. expects its second-quarter net income to
"significantly exceed" its prior guidance. Also, Dell raised its first-quarter
revenue guidance, while Siebel Systems lifted its earnings estimate.
Meanwhile, a strong financial report from Yahoo! renewed investor enthusiasm
for the first-quarter earnings season. The Internet bellwether said its
quarterly profit more than doubled year-over-year, and the firm boosted its
2004 sales forecast. Research In Motion also posted a solid quarterly profit
and lifted its outlook for the first and second quarters. This week, tech
stocks are surely to be a major focus, as IBM, Intel and numerous other
heavyweights shed light on their past quarter's activities.
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 Corporate Group
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