Intersecting Minds: Education, Business and Technology at the North Carolina State Jenkins Graduate School of Management

Finally, some good news | January 22, 2009

Two pieces of solid economic news from the high-tech sector over the last 24 hours:

First, IBM raised expectations on their upcoming earnings report: “The Armonk, N.Y.-based company reported net income of $4.4 billion, or $3.28 per share, for the three months ended Dec. 31. That compares with net income of $4 billion, or $2.80 per share, a year earlier.” That makes sense considering IBM is one of the few companies out there we’ve heard that is actively seeking interns.

And, driven by the success of the iPhone, Apple reported much better than expected than earnings, surprising investors and arousing at least some confidence for the day: “The Cupertino, Calif.-based company reported net income rose almost 2% to $1.61 billion, or $1.78 per share, in the three months ended Dec. 27, compared with $1.58 billion, or $1.76 per share, a year ago. Revenue rose 6% to $10.17 billion from $9.61 billion.”

As a result, the market finished up almost 280 points: “Stocks rallied early Wednesday, bouncing after the previous session’s steep decline, as a positive earnings report and forecast from IBM helped temper ongoing worries about the auto and banking sectors.” It’s pretty obvious that, at least at the top end of the market, high-tech is fairing much better the financial, housing, construction, and retail.

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