19 Jan 2007 Eyes on Earnings and Inflation
Posted at 15:49h in The Friday BriefIn last week’s Brief we asked the question was it time for technology to shine? The answer so far is a resounding ‘not yet,’ as bellwethers IBM, Motorola, Apple, and Intel all disappointed investors with their fourth quarter results in the last few days. The run-up in technology stock prices in the first weeks of January is proving to be premature. Investors who bid the shares up just weeks ago on the notion that 2007 earnings for tech were going to be well ahead of other sectors’ growth having changed their tune as early reports are less than their high expectations. They are now nervous about commoditization and competitive pressures combined with a slowing economy.