Friday, 19 October 2012

Poor Poor Tech Earnings

It was expected that earning results from last quarter were going to be bad.  In spite of that however, earning optimism kept stocks moving up.  Eventually it would have to come down to reality when the numbers come out.  And have they ever.  In the last week, several names have reported and they are all punished tremendously.  Lets look at some of them:

IBM - EPS estimate $3.61, actual $3.33 - stocks down 7.6% in 2 days.  It does have some support at $195 which is where it ended.  Next support is at $190.

Intel - EPS estimate $0.49, actual $58 - but it dropped anyway due to weakness in its business, down 3.7%.  It has a bottom resistance support at ~21.

Google - EPS estimate $10.65, actual $9.03 - stock down 8.5%.  It has a resistance at $680.

And the story is not yet over...Microsoft just reported their earnings after market close and is down 1.47% after hours after first dropping 3.4%.  This does not look to be a good quarter for tech...

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