Dow drops 33.87 points as I.B.M. shares lose 6% of their value
Article Abstract:
The Dow Jones Industrial average declined 33.87 points on Jan 22, 1997 due, in part, to IBM's loss of 6% of its share value. The company reported healthy earnings but warned analysts that its growth rate could slow during FY 1998. This warning apparently spurred investors to lower IBM's trading price. Microsoft and Intel have also warned of lower growth rates in FY 1998, but their stock prices have not suffered because even after the lower rates, the companies will continue strong growth. IBM's future growth may merely equal the average rate for the computer industry. IBM's earnings increased 18%, compared to the same quarter last year, but revenue only grew 6%. Industry experts tend to expect revenue growth rates in the double digits for a company to enjoy long-term stock share increases. Dell Computer, Compaq and other technology firms gained when IBM was losing value, indicating to some that the stock market can weather significant stock decreases in one company, while sparing others the same fate.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Technology stocks hit by variety of problems
Article Abstract:
Technology stocks have plummeted since mid-Oct 1997 for reasons that range from weakening domestic earnings growth to international economic problems. The reversal adds pressure to a nervous Wall Street, which has relied on technology for its resurgence since mid-April 1997. A recent Asian financial crisis could impact the US technology market, according to some investors. Charles Federman, chmn of the Broadview Associates technology banker, predicts a decline in earnings because company growth rates cannot maintain pace with their stock prices. Questions include whether the industry will experience a decline, and whether PC overcapacity has contributed to a steep drop in computer and memory chip prices. Price pressures, declining growth rates and poor prospects of doing business in Asia are contributing to the recent technology market deterioration, according to independent analyst and newsletter publisher Fred Hickey.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Nasdaq index upstages Dow in its first close above 1,500
Article Abstract:
The stock market has seen solid second qtr showings from the technology sector by companies such as Compaq and Dell Computer. Compaq reported higher earnings than analysts had predicted and Dell's stock rose 9 and 3/8 to 138. Traditionally, technology stocks do not do well during the summer months, but during 1997, they are leading the market and competing with blue-chip issues. As a result bond prices have been pushed higher. Durable goods companies and electronic companies are also doing well. Telecommunication companies' stocks and utility companies' stocks have both been weak compared to computer companies. Analysts view technology stocks leading the way to be a broadening of the market.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Chiefs of Lotus and I.B.M. discuss bid; software maker still tries to avoid takeover. Arbitragers have a field day with I.B.M.'s bid for Lotus
- Abstracts: HDTV: not heart-stopping, but a bit too close. Baggage for your cell phone. An Internet link gives an old technology some new luster
- Abstracts: Drop in sales hurts Apple turnaround. Drop in Macintosh market share slows, but the sales go to 'clones,' not Apple
- Abstracts: SBC planning charges up to $2.3 billion; move in connection with deal for Pactel. Baby Bells rely on specialty services for solid earnings
- Abstracts: The Internet: fun while it lasted. FCC rules on local phone networks are thrown out by Appellate Court. FCC is expected to reject Ameritech plan