Thursday, May 31, 2007

Recap

A fairly flat day despite some noticeable strength in tech. After yesterdays surge, the bulls decided to take their foot of the accelerator. It seems this market can continue moving higher despite the summer doldrums.

DELL is surging in after hours after news of plans to cut over 8,000 workers. Earnings missed estimates but it seems Dells earnings are the least of investors worries at this stage. Cost cutting is good news as far as this market is concerned.

US economic growth last quarter was the slowest in four years. Investors are however betting on rate cuts and growth is expected to pick up. I do not see a rate cut unless we have a stock market slump.

Wachovia is buying AG Edwards for $6.8 billion. This acquisition is further evidence that Wachovia is trying to become a major player in the financial services industry to go up against BAC and C.

2 comments:

RichardatDELL said...

On dell, just a point of clarification, earnings beat Wall Street's estimates...if that is what you meant by missed.

IM said...

Yeah I read they missed but it looks like it was a beat. Maybe I saw the profit decline from last yrs quarter and read it as a miss. Analyst change estimates so often thats it really hard to tell a miss from a beat these days.