Technology Shares Mixed to Lower in Late-Session Trading

Strategic Insights -

In late-session trading, technology shares were mixed to lower as PC maker stocks slumped following a key research firm cutting its sales estimates. The Dow Jones U.S. Technology Index declined 0.94% to 654.01, with some of the biggest names in the industry experiencing significant losses. Personal computer makers, including Dell and HP, saw their shares move lower after Gartner reduced its forecast for worldwide PC sales, now predicting a 9.3% increase this year compared to its previous estimate of 10.5%. Intel, however, stood by its business outlook for the second quarter, despite the gloomy outlook for the PC industry.

Key Takeaways:

  • The Dow Jones U.S. Technology Index declined 0.94% to 654.01 in late-session trading.
  • PC maker stocks, including Dell and HP, slumped after Gartner reduced its forecast for worldwide PC sales.
  • Gartner now predicts a 9.3% increase in PC sales this year, down from its previous estimate of 10.5%.
  • Intel stood by its business outlook for the second quarter, despite the declining PC market.
  • Sony ADRs declined 0.1% after the company put forward an 11% pay cut in annual salary and bonuses for executive officers and board members.
  • The move comes after Sony posted its widest yearly loss since 1995.

Statistics:

  • Dow Jones U.S. Technology Index: -0.94% to 654.01
  • Global PC sales forecast: 9.3% increase this year (down from 10.5%)
  • Intel: Standing by its business outlook for the second quarter
  • Sony ADRs: -0.1% to $25.24
  • PC makers' share prices:

+ Dell: -1.5%

+ HP: -0.5%

+ Apple: -0.1%

+ Intel: -1.4%

Sources:

  • "Boston, Jun 08, 2011 (MidnightTrader via COMTEX)"
  • Reuters: "Intel says it's standing by its business outlook for the second quarter"
  • Bloomberg: "Sony to cut executive officers' and board members' pay by 11%"
  • Gartner: "Gartner cuts PC sales forecast"