TECHNOLOGY STOCKS gained momentum in the premarket this morning as investors turned their sights to better times ahead.
S&P futures and Nasdaq futures popped higher, suggesting a positive morning in the markets. In premarket Instinet trading, telecom companies Nokia (NOK), Lucent Technologies (LU) and Vodafone (VOD) gained. So did shares of Dell Computer (DELL) and Cisco Systems (CSCO).
The strength came despite news that corporate earnings suffered their biggest slump since the last recession. According to Thomson Financial/First Call, earnings (for the 424 companies in the S&P 500 that have reported) fell 17% in the second quarter from a year ago. That was the steepest decline since the third quarter of 1991 and far worse than the 6.9% shortfall reported in this year's first quarter.
But that's old news. Investors are becoming increasingly focused on those companies promising sunnier skies in the second half of this year.
Intel (INTC) is one of them. The chip bellwether says it expects back-to-school and holiday demand to boost results in the computer industry during the second half of the year. "The industry has bottomed out," Chief Executive Craig Barrett told reporters in Penang, Malaysia, according to Bloomberg News. "There will be an uptick in demand in the third and fourth quarters." On Instinet, Intel shares moved higher in heavy trading
S&P futures and Nasdaq futures popped higher, suggesting a positive morning in the markets. In premarket Instinet trading, telecom companies Nokia (NOK), Lucent Technologies (LU) and Vodafone (VOD) gained. So did shares of Dell Computer (DELL) and Cisco Systems (CSCO).
The strength came despite news that corporate earnings suffered their biggest slump since the last recession. According to Thomson Financial/First Call, earnings (for the 424 companies in the S&P 500 that have reported) fell 17% in the second quarter from a year ago. That was the steepest decline since the third quarter of 1991 and far worse than the 6.9% shortfall reported in this year's first quarter.
But that's old news. Investors are becoming increasingly focused on those companies promising sunnier skies in the second half of this year.
Intel (INTC) is one of them. The chip bellwether says it expects back-to-school and holiday demand to boost results in the computer industry during the second half of the year. "The industry has bottomed out," Chief Executive Craig Barrett told reporters in Penang, Malaysia, according to Bloomberg News. "There will be an uptick in demand in the third and fourth quarters." On Instinet, Intel shares moved higher in heavy trading
