This morning (4/8) IBM issued its first earning warning in a decade. The company announced that quarterly revenue will fall $1 billion or so below forecasts and that earnings per share will be between $.66 and $.70, far short of what had been the consensus estimate on the Street of $.86 per share.

IBM set a new 52-week low this morning, dropping over 10% to close at $87.41. Information on IBM’s announcement can be found in the Monday Apple Stock Watch report to be published momentarily.

I expect uneven revenue and earnings reports from the technology sector as the quarterly reporting season begins. It appears that technology companies with significant exposure in large network hardware and services have yet to benefit from the up tick in spending that is occurring in other areas of the economy.

Robert

Please read Monday’s Apple Stock Watch Report, covering the sell off in IBM Apple Stock Watch Report - Big Blues

Robert

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Apple Stock Watch Reports for 2002 index

Robert

IBM gained $.33 today (4/9) to close at $87.74. Volume of over 17 million shares was more than double the daily average. Investors expecting a gain to erase much of yesterday’s loss, which followed Big Blue’s profit warning, were left disappointed.