New York Market: Apple leads computer shares surge
Sunday 28 March 1999
Apple Computer could be among the winners. The company said last week that demand for the new iMac personal computers, which come in five colours, is exceeding the company's most optimistic forecasts. The iMacs are the best-selling PCs in the US, Japan and France. Gateway 2000, the second- biggest direct seller of PCs, also is expected to have higher earnings.
The PC stocks that lost the most in recent weeks may not share in the renewed enthusiasm for technology issues. Dell Computer is still down 25 per cent since mid-February, when it reported the slowest revenue growth in two years. Compaq is down 23 per cent since warning of slower January sales. There will be "a lot of volatility going on until you get through the first quarter and the bellwethers report in line or above expectations", said Andrew Damm, a fund manager with BlackRock.
Compaq and Dell are both expected to report quarterly profit gains, though less than analysts initially expected. Microsoft may gain on earnings expectations. Stock prices "are driven by earnings, and tech stock earnings growth is still better than in other sectors", said Ted Bridges, at Bridges Investment Counsel. The 61 "technology" companies in the S&P 500 are expected to report 34 per cent earnings growth in the first quarter compared with an expected 6.4 per cent growth for the entire index.
The S&P's 500 Index dropped 1.3 per cent and the Nasdaq was little changed, falling less than 0.1 per cent. The Dow Jones Industrial Average closed at 9822.24, down 175 points from the previous week.
After early stumbles, internet-related shares recorded some of the best gains. Some investors expect more to come. AboveNet Communications, which helps businesses use the net, added 70 per cent for the week. InterVU, which helps companies broadcast over the net, gained 36 per cent.
Some investors are sceptical that the gains can last. "It's a lot of value investors getting into stocks they wanted to own at lower prices," said Scotty George, at Corinthian Partners Asset Management. "They are so overvalued, the rally can't be sustained."
- 2 Why this father didn’t hide his daughter’s heroin overdose in her obituary
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
- 5 The most powerful passports in the world
Nepal earthquake in pictures: Photos show devastation caused by 7.8 magnitude earthquake
Smartphones are making children borderline autistic, says psychiatrist
Nepal earthquake: The race is on to help thousands trapped under rubble around Kathmandu, while remote villages face a long wait for help
Royal baby: Live updates as superbug closes ward at St Mary's Hospital where Duchess of Cambridge is due to give birth
Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...