Investors will get a closer look next week at what the slowing economy could mean for technology earnings.
It’s been a rough few months for a number of tech sectors, with chip stocks, networkers and others battered by a combination of oversupply and slower than expected economic growth. Investors will be watching this month’s earnings reports to see how companies have coped with those issues, and how soon they see stronger growth returning.
The quarterly parade of earnings reports will swing into high gear next week, with Intel and Yahoo
set to report after the bell on Tuesday.
Analysts are looking for Yahoo to report third-quarter earnings of 9 cents a share on revenues of $644 million, both up about 80% from a year ago, but Goldman Sachs and CS First Boston have said in recent days that they expect Yahoo to surpass those numbers. Shares of Yahoo have recovered much of the ground they lost after the company missed revenue estimates last quarter.
Analysts are expecting more modest gains from Intel, with earnings and revenues to rise about 8% each to 27 cents a share and $8.45 billion, after the company guided lower last month. Perhaps even more important will be how well the company is working through the high inventories that have weighed on the chip sector all year.
Also next week, high-flyer Travelzoo reports Tuesday morning, Apple
, Novellus
and QLogic
after the close on Wednesday, Nokia
in the morning on Thursday, and Juniper
, Rambus
and Sun
after the close on Thursday.
Stocks fell sharply Friday on a weaker than expected September employment report and another new high in oil prices.
The Nasdaq fell 28 to 1919, the S&P 500 lost 8 to 1122, and the Dow dropped 70 to 10,055. Volume declined to 1.3 billion shares on the NYSE, and 1.67 billion on the Nasdaq. Decliners led by a few issues on the NYSE, and by 21-9 on the Nasdaq. Downside volume was 71% on the NYSE, and 84% on the Nasdaq. New highs-new lows were 135-24 on the NYSE, and 62-43 on the Nasdaq.
AMD lost 4% after missing estimates and issuing lukewarm guidance.
AT&T gained 1% on plans for massive layoffs and impairment and restructuring charges.
Monster Worldwide and Paychex
lost 3% each on the jobs report.
Lionbridge , Manhattan Associates
, Watchguard
, SonicWall
, Terayon
and Alliance Semi
tumbled on warnings.
Blue Coat fell 18% after its CFO resigned.
GlowPoint gained 14% on a Justice Department contract.
