Market Volatility and Industry Shifts: A Summary of Business News

Strategic Insights -

The Dow Jones industrial average experienced a late rebound, closing with a loss of just 25.66 points at 9,141.84, following a sharp decline of as much as 76 points during the session. Technology and drug stocks rose, pushing the Nasdaq market to its second consecutive record high. Meanwhile, blue-chip shares pulled back as investors locked in some of last week's record gains.

Key Takeaways:

  • Personal-computer unit shipments are expected to rise to 93.1 million units in 1998, a 16% increase from the previous year, driven by low-cost PCs.
  • Revenue growth in the PC market is forecast to rise only 6.4% to $166 billion in 1998, due to the negative impact of cheap machines on profit margins.
  • K-tel International Inc. plans to start selling records via the Internet, following the trend of online sales.
  • General Motors chairman Jack Smith received a 15% pay increase, bringing his total pay package to $7.1 million, up from $6.1 million in 1996.
  • AT&T Corp. reported a 18% profit hike in the first quarter, driven by cost reductions from 4,500 job cuts.
  • Texas Instruments Inc. unveiled new analog semiconductors that regulate power to digital signal processors, which will make it easier to use DSPs in more advanced applications.
  • Clear Channel Communications Inc. agreed to buy six radio stations in West Palm Beach, Fla., expanding its business in the state.
  • The new semiconductors developed by Texas Instruments will benefit various industries, including medical imaging, flight simulation, and video games.

Statistics:

  • Dow Jones industrial average: 9,141.84 (-25.66 points)
  • Nasdaq market: reached a second consecutive record high
  • Personal-computer unit shipments: 93.1 million units (1998 forecast)
  • Revenue growth in the PC market: 6.4% (1998 forecast)
  • AT&T Corp. profit: $1.33 billion (18% increase)
  • Texas Instruments' pay package: $7.1 million (Jack Smith)
  • Number of job cuts at AT&T Corp.: 4,500

Sources:

  • "Dow weathers slide; drug, tech stocks up" - story not attributed
  • "Red McCombs to sell Austin dealerships" - not attributed
  • "16% rise seen for PC shipments" - Dataquest Inc.
  • "K-tel's latest hit: Internet sales" - story not attributed
  • "GM chairman sees pay increase" - not attributed
  • "AT&T reports 18% profit hike" - AT&T Corp.
  • "TI unveils new semiconductors" - Texas Instruments Inc.
  • "Clear Channel to buy 6 stations" - Clear Channel Communications Inc.