Monday, October 20, 2003
Tech stocks were a major market force last week, as some tech heavyweights
threw their earnings weight around. Chip issues hit a few home runs, as Intel
and Novellus rallied on their quarterly reports, and Advanced Micro Devices
surprised the Street with better-than-expected earnings. Despite the promising
results, investors remained cautious. "We are getting to a point where good
news is anticipated," said Angel Mata, managing director at Legg Mason Wood
Walker, in a Reuters News piece. "In order for something like Intel to have a
significant effect on the market, it would have to be something that is so
profound that there is no question that we are seeing an economic recovery."
Computer hardware and storage stocks mostly struck out. International Business
Machines, Apple Computer and Sun Microsystems tanked, as Big Blue's revenue
figure disappointed some analysts, and Sun Micro reported a wider loss on weak
server demand. Apple seemed to get caught in the crossfire, as it swung to a
profit on a surge in revenue. Still, EMC put in a good performance.
Communications equipment stocks received mixed reviews. Motorola was a very
positive influence on the broader market, after it provided higher-than-
expected earnings and a promising sales forecast. However, Nokia's dour
current-quarter outlook and Tellabs' quarterly loss sent those stocks into the
red. Peter Boockvar, equity strategist at Miller Tabak & Co., told Reuters
News, "We have had a nice run on optimism that earnings are going to be good
... There is going to be a high level of discrimination with respect to the
earnings, but in general the market is celebrating good numbers." This week,
spectators will be eyeing a new lineup of players on the roster, including
Computer Associates, Lucent Technologies and Texas Instruments.
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
back to top
