Technology has been a big lure in an otherwise fishy stock market this week.
Steve Jobs has a message for third party software developers who have largely been shut out of the iPhone extravaganza: Call Us Up! In a sharp reversal to an earlier policy, and in an open letter from Jobs posted on Apple's web site, the company is now inviting software developers to create applications for the iPhone that would live on the iPhone's memory and not on the web.
Here are my morning observations: 1) Techs come through: after the disappointment of yesterday, when many regional banks hit new lows, the news flow is far more positive. We said last week techs had to make some positive noises to justify their recent runups: Yahoo, Intel, and Seagate all were better than expected.
Wall Street will try to shake off its housing induced malaise on Wednesday, with the help of some good earnings news from the tech world. But key inflation and housing data and another batch of major earnings before the bell will be play a big role in deciding the course for stocks.
Stocks fell after Fed Chairman Ben Bernanke said the housing slump is likely act as a drag on to U.S. economic growth, sparking investor concerns. "It was just last month Bernanke was saying things were contained, but now he's saying housing troubles can spread," said Brian Hicks, president of Wealth Daily. "This-flip flop in the last month has really spooked the markets."
How much oil pressure can the stock market take before it blows a gasket? Oil continues to surge into record territory, closing in on $88 per barrel and ready to pump right through $90. Stocks are floundering this morning after weakness in Europe and a down day in Asia. China, though, continues to be the exception with Shanghai stocks once more in record territory.
Here's part two of my what to expect posts on tech earnings this week: At Intel, a decidedly more upbeat outlook for the world's largest chipmaker Intel: The company took the unusual step of hosting a mid-quarter financial update a few weeks ago, raising its outlook and narrowing its gross margins to a healthy 52%.
Here are my thoughts this Monday morning: 1) Citigroup's earnings were about in line with their own drastically reduced guidance they gave a couple weeks ago. Fixed income was poor as expected, and consumer delinquency rates continue to uptick. International posted strong revenue growth (up 30%) Conference call at 8:30.
By the end of the coming week, the corporate earnings picture will be clear and it may not necessarily be one the stock market likes.
As gadget makers like Apple (AAPL) and Research in Motion (RIMM) soar to new highs, the chip makers, such as Micron (MU), can’t seem to keep up. Carter Worth turns to the charts for a two-faced tech trade. How can tech keep rallying without chips – the backbone of the sector?
Sprint Nextel shares fell almost 4 percent Tuesday a day after the No. 3 U.S. mobile-phone service warned it would not meet 2007 financial targets and said its chief executive had stepped down.
Is there no end in sight for Google and its shares? Last week when the company was oh-so-close to $600, I wrote that price targets would be on the move now that the company was teasing investors with yet another key milestone on its journey to the stratosphere, and sure enough, Bear Stearns revised its 52-week target to $700 just two days later.