Hardware goes soft on slow trade
By Binti Harvey, CBS MarketWatch
Last Update: 11:57 AM ET Dec 29, 1998
NewsWatch
NEW YORK (CBS.MW) -- Semiconductor and computer shares stumbled
Tuesday in slow trading as the absence of positive announcements slowed
momentum and intensified selling pressure.
The Goldman Sachs Computer Hardware Index slid 1
percent, while the Philadelphia Semiconductor Index
gave up 1.2 percent. Analysts noted that the
computer hardware group's gains over the past three
months make it a prime target for investor pullbacks
as the year nears its close.
Blue-chip computer hardware issues losing steam
included IBM (IBM), down 1 7/8 at 187 3/8, Dell
(DELL), down 1 7/16 at 73 5/16 and Compaq (CPQ),
off 11/16 at 41 3/4.
In Lehman Brothers' weekly preview of upcoming PC
events, analyst Kimberly Alexy said she does not
expect "any significant events to serve as catalysts
for the shares this week."
Among chipmakers, Intel (INTC) drifted lower for the
second consecutive session, erasing last week's
gains. Intel shares were down 15/16 to 121 3/16. Texas Instruments (TXN)
fell 1 5/16 to 83 15/16 and Micron (MU) lost 11/16 to 51 9/16.
Despite the recent slowdown, analyst Richard Gardner continues to expect
strong demand in 1999. "Due to healthy corporate and consumer demand,
there is a high probability the the first and second quarter will be better than
is seasonally typical," Gardner said, citing year-2000 upgrades and attractive
price points. |
