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Intel forecast hints at weak PC sales

Tuesday, July 17, 2012 - 02:16

July 17 - Summary of business headlines: Intel forecast indicates PC sales weakness; Yahoo profits decline; Stocks rise despite Bernanke disappointment; Consumer inflation flat. Bobbi Rebell reports.

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PLEASE NOTE: THIS EDIT CONTAINS 4:3 MATERIAL Signs of trouble for PC sales gleaned from Intel's latest report card. The top chipmaker forecast weak current quarter revenues- re-inforcing fears that the sluggish global economy and a lack of consumer interest are hurting PC sales. Overall earnings beat forecasts. On new CEO Marissa Mayer's first day on the job, Yahoo reported a slight decline in profits in its second quarter. The results still beat forecasts. The ailing Web pioneer has seen its revenue growth stall as consumers spend more time on sites like Facebook and Twitter. Barbie sales were up 5 percent at Mattel- that helped drive higher than expected earnings at the world's largest toy maker. Coca Cola results also beat forecasts- rising consumption of its drinks in emerging markets helped offset a fizzle in Europe. The higher dollar hurt Johnson and Johnson- which does a lot of its business overseas. The healthcare company still managed to beat forecasts but it also cut its outlook for the full year. In the financial sector: Goldman Sachs stock crossed $100 a share after it reported better than expected numbers. Charles Schwab profits rose 16 percent thanks to an increase in its fee based advisory accounts. At TD Ameritrade profits dipped because client trading slowed down. Both Schwab and TD Ameritrade beat forecasts. Stocks rose despite comments from Fed Chairman Ben Bernanke offering few clues as to whether the US central bank was moving closer to a new round of monetary stimulus- disappointing many market watchers. But not Bob Brusca of Fact and Opinion Economics: SOUNDBITE: BOB BRUSCA, CHIEF ECONOMIST, FACT AND OPINION ECONOMICS (ENGLISH) SAYING: "The Fed has just extended its previous program of operation twist to near the end of the year. I thought that the Fed just did something more for us so I didn't think that they'd be prepared to do more. " Consumer prices were flat in June. A drop in gasoline prices offset gains in overall consumer prices, according to the US Labor Department's monthly Consumer Price Index. Taking a look at the closing numbers: In Europe: a mixed bag on thin trading. But in the US, all arrows were up. Bobbi Rebell, Reuters.

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Intel forecast hints at weak PC sales

Tuesday, July 17, 2012 - 02:16