Intelwill deliver the first major report of the earnings season Tuesday night, and the chip giant’s results are expected to show the effects of a year-long inventory correction.
Intel is expected to report fourth-quarter earnings of 31 cents a share, down from 33 cents in the year-ago quarter, reflecting falling margins and pricing pressures.
Revenues are expected to rise from $8.74 billion to $9.41 billion, however, as demand has rebounded in recent months and inventories have started to come down. Investors will be looking for that positive trend to continue Tuesday night.
Stocks posted modest gains Monday ahead of key earnings reports.
The Nasdaq rose 8 to 2097, the S&P 500 climbed 4 to 1190, and the Dow rose 17 to 10,621. Volume rose to 1.49 billion shares on the NYSE, but slipped to 2.1 billion on the Nasdaq. Advancers led 20-12 on the NYSE, and 17-14 on the Nasdaq. Upside volume was 64% on the NYSE, and 44% on the Nasdaq. New highs-new lows were 63-12 on the NYSE, and 86-29 on the Nasdaq.
Western Wirelessrose 2% as its merger with Alltelbecame official.
Captivasurged 16% after the company raised guidance, and Nam Taijumped 9% on strong results.
SupportSoftgained 12% on a Smith Barney upgrade.
Mobilityfell 10% on a warning.