Dell met earnings estimates and topped revenue forecasts after the close on Thursday, but once again investors appeared to be looking for signs of a stronger recovery in tech spending.
Earnings of 24 cents a share met analyst estimates, and revenues of $9.78 billion came in ahead of $9.75 billion forecasts. Dell said it expects third-quarter earnings to be 26 cents, in line with estimates, and projected revenues of $10.5 billion topped $10.3 billion projections.
Dell fell more than 2% from its 4 o’clock close, however, as investors looking for stronger signs of a recovery were once again left wanting more.
Traders after the close also appeared spooked by widespread power outages that hit New York, New Jersey, Connecticut, Michigan, Ohio and Ontario. Stocks stabilized somewhat when news outlets reported that the outages were due to the overloaded Niagara Mohawk power grid failing, rather than criminal or terrorist activity. There was also a New York power plant fire reported. The outages could affect financial markets tomorrow.
The broader market gained during the day on tame – but not too tame – producer prices and the capture of a senior Al Qaeda official.
The Nasdaq gained 13 to 1700, the S&P 500 rose 6 to 990, and the Dow climbed 38 to 9310. Volume declined to 1.19 billion shares on the NYSE, and 1.39 billion on the Nasdaq. Advancers led 19-12 on the NYSE, and 18-12 on the Nasdaq. Upside volume was 66% on the NYSE, and 64% on the Nasdaq. New highs-new lows were 165-49 on the NYSE, and 161-8 on the Nasdaq.
Brocade rose 2.5% after matching estimates.
ATI rose and NVIDIA
fell after ATI won Microsoft’s
Xbox business.
SCO Group gained 4% on its earnings report.
Broadcom and PMC-Sierra
fell on Merrill Lynch Sell ratings.
Lucent and AMD
gained on contract wins.
AOL edged higher despite predicting a continued ad slump.
Homestore fell 8% after settling a class action suit.
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