RealTime IT News

No Surprises From Dell

Dell posted its usual strong quarter after the close on Thursday, but it remains to be seen how much Dell's good fortune will benefit the rest of the stock market.

Dell earned 37 cents a share in the first quarter, in line with estimates. Revenues rose 16% to $13.39 billion, slightly below forecasts. Gross margins of 18.6% were better than expected.

Dell said it sees second-quarter earnings of 37-39 cents a share on sales of $13.6-$13.8 billion, in line to slightly ahead of analysts' forecasts.

Dell reported strong global sales growth, led by strong storage and mobile computing sales.

Shares of Dell climbed 3% in after-hours trading, but since the company's strong results may have come in part at the expense of competitors, it remains to be seen if the broader market will benefit from Dell's results, particularly after disappointing earnings from retail giant Wal-Mart battered stocks during the day.

The Nasdaq fell 7 to 1963, the S&P 500 lost 11 to 1159, and the Dow tumbled 110 to 10,189. Volume rose to 2 billion shares on the NYSE, and 1.79 billion on the Nasdaq. Decliners led 23-9 on the NYSE, and 19-11 on the Nasdaq. Downside volume was 80% on the NYSE, and 52% on the Nasdaq. New highs-new lows were 69-77 on the NYSE, and 53-86 on the Nasdaq.

Ameritrade edged higher as it appeared that E*Trade may launch a hostile takeover bid for the company.

NetApp and Micromuse gained on upgrades.

Napster and Acxiom tumbled on their results.

Proxim plunged after the company said it has an "immediate need" for financing.