Technology Stocks Experience Mixed Day

Strategic Insights -

Technology stocks showed modest gains Monday, with some groups in the sector displaying stronger performance than others. IBM was a standout among blue chips, while Dell Computer remained unchanged despite potentially beating earnings expectations. Makers of computer disk drives rallied after reports of shortages in some markets, and several issues rose on takeover news.

Key Takeaways:

  • IBM (ticker symbol IBM) jumped $4 to $127.37 1/2, making it the day's top performer among blue chips.
  • Dell Computer (DELL) was unchanged at $41.43 3/4, with analysts predicting earnings above Wall Street forecasts.
  • Makers of computer disk drives, led by Seagate Technology (SEG), rose after reports of shortages in some markets. Seagate's share price increased by $1.43 3/4 to $30.68 3/4.
  • Oil stocks fell as crude futures declined 1.3 percent, with Royal Dutch Petroleum (RD) dropping $1.37 1/2 to $64.43 3/4.
  • Players International (PLAY) gained $1.68 3/4 to $7.90 5/8 after agreeing to be acquired by Harrah's Entertainment (HET) for $8.50 a share in cash.
  • Turner Corp. (TUR) surged $3.31 1/4 to $28.25 after German builder Hochtief offered to buy the company for $263 million, or $28.62 1/2 a share.
  • Eastern Enterprises (EFU) jumped $4.12 1/2 to $43.62 1/2 after announcing it's considering selling all or part of the company.

Statistics:

  • IBM's share price increase: $4
  • Dell Computer's unchanged share price: $41.43 3/4
  • Seagate Technology's share price increase: $1.43 3/4
  • Crude futures decline: 1.3 percent
  • Royal Dutch Petroleum's share price decline: $1.37 1/2
  • Players International's share price increase: $1.68 3/4
  • Turner Corp.'s share price increase: $3.31 1/4
  • Eastern Enterprises' share price increase: $4.12 1/2

Sources:

  • The Wall Street Journal
  • M. Smith, "IBM Jumps on Plan for 3-4% Layoffs", (no date)
  • "The Dow Loses 54.93 to 2877.40", (no date)
  • "Disney Expected to Be Prudent in Capital Spending", (no date)
  • "Turner Corp. Surges After Hochtief Offer", (no date)
  • "Eastern Enterprises Jumps After Announcing Possible Sale", (no date)