denni, More mixed messages - negatives on comm chip mfgs (below):
Dell (pos):
"Among the items cited in the improved outlook for the quarter were strong sales of servers, robust shipments to small and medium-sized businesses in the United States and gains overseas.
"We are very bullish on the U.S., bullish on our global prospects. We think that the economy is improving. We believe IT (information technology) is always going to be needed in some way.
biz.yahoo.com
Communications (negative):
LOS ANGELES, July 6 (Reuters) - A warning from Conexant Systems Inc. (NasdaqNM:CNXT - News) and a broad downgrade by Lehman Brothers sent shares of U.S. communications chipmakers sharply lower on Tuesday, raising concern about whether the peak of the current recovery for the communications industry has passed.
biz.yahoo.com
Chanda added that "macro demand drivers are lackluster," including demand for wireless equipment, a slowdown in China, and weakness in the U.S. consumer market.
...
But shares in both Broadcom and Marvell were sharply lower on Tuesday, as other analysts sounded notes of caution.
We remain neutral on the group - our models tell us that inventories are high in the comm (infrastructure) and auto supply chains, and the most recent datapoints don't suggest that demand is robust enough to sop all of it up," he said.
biz.yahoo.com
"It's all symptomatic of a slowing economic pace. I think that's what's worrying everybody," said Larry Wachtel, senior vice president and market analyst at Wachovia Securities"
PMC-Sierra Inc (NasdaqNM:PMCS - News), which designs chips for telecommunications, was among them, as investors expressed disappointment with the company's revenue forecast.
Oil (increasing):
Oil settled 48 cents higher at $41.25 a barrel after rising as high as $41.80, its highest level since the 21-year record of $42.45 hit on June 2.
Regards,
Amy J |
