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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (21052)	11/30/2000 12:23:00 PM
From: in2tech	Read Replies (1) \| Respond to of 65232

MSFT also.... Microsoft (MSFT) 59 7/16 -5 5/8: Last night's earnings warning from Gateway (GTW 17.79 -11.71) confirmed the market's worst fears... The economy is slowing down harder and faster than expected... And it's not just a domestic slowdown... The European and Asian economies also remain sluggish, due in part, to the high price of crude... MSFT recently made note of the slowing world economy at a recent conference... Though those comments didn't spark anywhere near the market reaction that the GTW warning did, they go to the same point... The global economy is slowing and consumers everywhere are pulling back... The same can be said for corporations... One look at the Briefing.com Earnings Warnings page tells you all you need to know about the slowdown in corporate America... Given that PCs are a discretionary item, it only makes sense that consumers/corporations would opt to postpone new purchases in times of economic uncertainty... Of course, that's not only bad news for the box builders like GTW but for the software companies like MSFT as well... And you can bet that the GTW news has every MSFT analyst going over his/her numbers today... Considering the magnitude of the GTW warning, Briefing.com expects that many of these analysts will begin to trim their numbers on MSFT in the days and weeks to come... With MSFT already having blown through minor support in the 62-61 area this morning, such news is likely to prompt a near-term retest of the 50-48 area. -- Robert Walberg, Briefing.com