Street Life
Tuesday, February 16, 1999, 7:30 p.m.
Dell and the Dow Disappoint
By Andrew Serwer
Tuesday. A disappointing ending to a disappointing day.
The Dow took off early in the day--we were buzzsawin'
up 115 points at one time--then we just slid down the
rest of the day. The Dow closed up only 22 binglingas,
to 9297. Your NASDAQ stock market was DOWN 8 points,
to 2313. Here's what's up:
DELL.... Announced after the Dell, I mean bell. So the
fears that Dan Niles, yes, Dan Niles, bandied about
were true. Dell's earnings were in line with
expectations but its revenues weren't quite as strong
as expected. In after-hours trading, the stock was down
as much as $15, to $75. But the conference call was
still ongoing as je scribble. So revvies were up 41%,
to $5.17 billion. (Street was looking for $5.5 billion
before the Niles pronouncement.) Net income climbed
49%, to $425 million. Stock sank like a stone. (Hey,
they are based in Round ROCK, Tejas!!) Hell's Dell!!
(Bear talk: "That's it. Dell is finished. I told you he
was too young to run a company!!") Stock split didn't
help. Still...don't short this stock.... Meanwhile, HP
had a great quarter, but the HWP was still off $6, to
$70 1/2. You know if the weakness in techs continues,
the Dow isn't going to look so bad, and it will be the
NASDAQ which will stink!!
BOND RATES.... The exception proves the rule. The long
bond actually fell a bit today, to 5.35%. Whew!! We
needed that bad!!! Listen, we were as low as 4.7% in
mid-October.... That's an 85-basis-point climb (for
those of you who are arithmetically challenged!). The
Japanese are allowing rates to fall, but so far no
relief. Only good news is that everyone is getting so
bearish now.
WAL-MART.... Some blowout numbers this morning.
Consider: In 1970, Sam's company had 32 stores and some
$31 million in ANNUAL revenues. Today the company has
like 2,750 stores and had $1.56 BILLION in the latest
QUARTER!! Net income climbed 23%, to 70 cents. And the
stock?? The stock went wacko!!! WMT was up $3, to
$87.50, an all-time high. They back!!!!
ROSS PEROT ON Y2K.... (This is from an interview done
by my colleague Er-eeeeek Schonfeld.) According to
Perot: "The focus on trying to solve the Y2K problem
before 2000 is causing huge amounts of work that needs
to be done to be delayed. We've used computers as
bulldozers for years just to get bills paid, deposits
processed, that sort of thing. Now information
technology is being used to give companies a strategic
and competitive advantage. Most of those new systems
are being delayed by Y2K work. The fact that everybody
is delaying is a good signal to me. The world will not
come to a stop and I would not urge people to move to
Montana and build an underground bunker." Thank you,
Ross. I was all ears!
Loose Change
Schwab reported that customers made 150,000 trades a
day online last month. Stock is up over $3, to
$66-plus.... What if we found out that Don Rickles and
Ned Johnson were one and the same?... So warm in NYC
this week. Global warming? I'm for it!!!... Did you see
that Thomas Banyacya died? Who he? One of the Hopi
elders who said the world was coming to an end. He was
a good guy, but I guess he came to an end first....
Samuel L. Jackson was NOT so good on the ESPYs....
Here's some more post Monica from my buddy Duker: "What
is it about Southerners and peaches? You got the whole
Atlanta peach and Peachtree thing (which is all a big
misunderstanding: It was settlers mishearing Indians
saying 'pitch trees,' NOT peach trees); there's eat a
peach (we all know the sad reason for that) and now
there is this impeachment thing which is mostly planted
and nurtured by Southerners--faux (Newt) and real
(Trent). Some of whom have already reaped what they
sowed. To continue your vein on Friday: Tom DeLay: goes
back to killing cockroaches in Texas and talks to
himself a lot. Bob Livingston: continues to have
occasional affairs--every Tuesday after poker. Henry
Hyde: goes back to the packyderm house up on
Connecticut Ave. James Carville: who, after all, IS our
favorite Martian, goes back home, his work on earth
(saving the first alien president--why else would
everybody be so mad at Bill) being done. Al Gore: goes
on to become the first alien ROBOT president. William
Rehnquist: writes a wryly humorous account of his days
in the Senate called 'I'll Be the Judge of That.' Newt
Gingrich: writes, directs, and produces a movie about
his time as Speaker. Trying to broaden his base of
support with the masses, it is entitled 'Newt: In the
House' and stars Will Smith. The Secret Service: after
settling a class-action suit by former presidents and
their survivors, is forced to, among other things, drop
'Secret' from its name. That's all I can do right now.
I hope you don't feel like you been tied to the
whippin' post." Okay, Duke. Sometimes I feel like I'm
dyin'! |
