Investors Await Yahoo's Next Step
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Tech stocks had some big earnings releases to sort through after the market closed today. But even with Yahoo meeting expectations, IBM hitting its marks and Intel producing stellar results, other concerns weighed on the market.
The Dow closed down by about a half a percent to 13,912.94. The Nasdaq index lost about .58 to end the day at 2,763.91. Shakiness in the housing market, which continued to roil financial stocks, as well as oil hitting $88 a barrel were seen as factors.
Tech stocks had strong results. Yahoo met expectations on earnings, even though its profit income was down by about 5 percent from the same time last year.
Shares of Yahoo were heading upward by just under 10 percent to $29.33 in after hours trading. Traders and analysts are awaiting results from Yahoo's 100-day review that it announced back in late June amid management shakeups.
The results were one among a bevy of bellwethers who announced results today.
Shares of IBM were off by about a buck to $118.56 in after hours trading after Big Blue hit expectations on third quarter results -- but noted some more slippage in its hardware and mainframe sales. Dr. Virtualization, we presume?
Software stayed strong and helped IBM meet its full-year sales. Revenues came in at $24.1 billion, up 7 percent compared to the same time last year. Adjust for currency differences and the rise was actually about 3 percent.
Earnings per share were $1.68, up by 16 percent from $1.45 per share in the third quarter of 2006.
Intel shook up the markets by announcing about 2,000 layoffs and a new CFO: Stacy Smith, who had been the chip giant's chief administrative officer. Shares of Intel were headed up by $1.22 to $26.70 after losing about a percent in regular trading hours.
The company hit expectations on earnings, with profit of $1.9 billion up by 43 percent from the same time last year. Revenues jumped by 15 percent to $10 billion from the same time last year.
Shares of Amazon finished the day down by a buck at $89.53 after an analyst downgraded the e-tailer along with Overstock.com. But Amazons share had gained back $1.47 in after hours as news that the House extended its four year moratorium on Internet taxes cycled into the trading hours.
ValueClick, the advertising company, closed down $3.23 in regular trading to close at $24.55 after it warned on earnings. It had picked up 63 cents in after hours trading.