Tech bellwether Intel Corporation (INTC: 16.83,0.34, 2.06%) beat second quarter earnings estimates, weighing in with non-GAAP net income of $1 billion and non-GAAP earnings per share of 18 cents on revenue of $8 billion. Revenue improved by 12% when compared to the previous quarter. Analysts were expecting earnings of 8 cents per share on revenue of $7.27 billion, according to market analysts.
The company reported a GAAP net loss of $398 million or 7 cents per share, which includes a fine from the European Commission.Wall Street closed solidly higher Tuesday after Goldman Sachs kicked off earnings season for the banking sector by blowing expectations out of the water.
The company reported a GAAP net loss of $398 million or 7 cents per share, which includes a fine from the European Commission.Wall Street closed solidly higher Tuesday after Goldman Sachs kicked off earnings season for the banking sector by blowing expectations out of the water.
"Intel's second-quarter results reflect improving conditions in the PC 
market segment with our strongest first- to second-quarter growth since 1988 and a clear expectation for a seasonally stronger second half," said Paul Otellini, Intel president and CEO in a press release. "Intel's strategy of investing in new technologies and innovative products, combined with ongoing focus on operating efficiencies, continues to yield benefits that are evident in our strengthening financial performance."
market segment with our strongest first- to second-quarter growth since 1988 and a clear expectation for a seasonally stronger second half," said Paul Otellini, Intel president and CEO in a press release. "Intel's strategy of investing in new technologies and innovative products, combined with ongoing focus on operating efficiencies, continues to yield benefits that are evident in our strengthening financial performance."The chip maker is forecasting between $8.1 and $8.9 billion in sales in the third quarter and will observe a "quiet period" from end of business on August 28 until third-quarter earnings are released.
Doug Freedman, an analyst with Broadpoint Amtech has a "buy" rating on Intel and a price target of $19 on the stock. He told Reuters he was pleased with the Intel's results.
Today's Markets
The Dow Jones Industrial Average climbed 27.81 points, or 0.33%, to 8359.49, the Standard & Poor's 500 rose 4.79 points, or 0.53%, to 905.84 and the Nasdaq Composite picked up 6.52 points, or 0.36%, to 1799.73.
The mini rally added onto Monday’s 185-point surge, which was sparked by hopes that banking titan Goldman Sachs would beat the Street. Goldman kept its part of the bargain, reporting significantly better-than-expected results Tuesday morning. Stocks also benefited from a positive report on retail sales and an earnings beat from Johnson & Johnson.
The Dow Jones Industrial Average climbed 27.81 points, or 0.33%, to 8359.49, the Standard & Poor's 500 rose 4.79 points, or 0.53%, to 905.84 and the Nasdaq Composite picked up 6.52 points, or 0.36%, to 1799.73.
The mini rally added onto Monday’s 185-point surge, which was sparked by hopes that banking titan Goldman Sachs would beat the Street. Goldman kept its part of the bargain, reporting significantly better-than-expected results Tuesday morning. Stocks also benefited from a positive report on retail sales and an earnings beat from Johnson & Johnson.
Tuesday’s gains were limited somewhat by a new report that revealed inflation on the wholesale level grew by nearly twice as much as expected.
Still, the bulls will take the rally as stocks had been in a recent slump amid economic and earnings jitters. Last week the Dow suffered its first four-week slide early March.
“Two days ago it looked like the market was really going to roll over. But we had a big day yesterday and a positive follow-through today,” NYSE said trader Ted Weisberg of Seaport Securitities. “The lightning rod has been the financial sector again. As the banks seem to do better, so does the rest of the market. Now the momentum is obviously on the positive side.”
More than half of the Dow's 30 components closed higher, led by Home Depot (HD: 23.68, 0.56, 2.42%) and Intel (INTC: 16.83, 0.34, 2.06%), which kicks off earnings season for the tech sector after the closing bell. Travelers (TRV: 39.51, -0.81, -2.01%) and AT&T (T: 23.47, -0.291, -1.22%) were the biggest percentage losers in the index.
Tech stocks lagged behind as the sector was dragged down by Dell which fell sharply after the computer maker said late Monday it sees lower quarterly gross margins, throwing cold water on hopes of a speedy end to the PC slump.
“I think investors continue to have a tug-of-war on their hands between the notion of green shoots… and some structural realities that are quite painful: unemployment is high and likely going higher,” said Matthew Kaufler, portfolio manager at Federated Clover Investment Advisors.
More than half of the Dow's 30 components closed higher, led by Home Depot (HD: 23.68, 0.56, 2.42%) and Intel (INTC: 16.83, 0.34, 2.06%), which kicks off earnings season for the tech sector after the closing bell. Travelers (TRV: 39.51, -0.81, -2.01%) and AT&T (T: 23.47, -0.291, -1.22%) were the biggest percentage losers in the index.Tech stocks lagged behind as the sector was dragged down by Dell which fell sharply after the computer maker said late Monday it sees lower quarterly gross margins, throwing cold water on hopes of a speedy end to the PC slump.
“I think investors continue to have a tug-of-war on their hands between the notion of green shoots… and some structural realities that are quite painful: unemployment is high and likely going higher,” said Matthew Kaufler, portfolio manager at Federated Clover Investment Advisors.
Global Markets
European stocks closed in the green, led by Germany's DAX, which climbed 1.26% to 4781.69. London's FTSE 100 closed up 0.85% to 4237.68 and France's CAC 40 advanced 0.98% to 3081.87.Asian markets surged on the heels of Wall Street's rally Monday. Japan's Nikkei 225 jumped 2.34% to 9261.81 and Hong Kong's Hang Seng soared 3.66% to 17885.73.
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