Topics:
Tech Stocks
Indexes Rise As Stimulus Package Considered
Investors are waiting to see what details emerge as the $825 billion economic stimulus package goes through review and revisions. President Barack Obama's American Recovery and Reinvestment Plan is on track for Senate committee review and a full House vote this week. The technology sector has been hit by several factors, including falling demand for PCs. Global shipments fell 0.4% in 4Q, marking the first decrease in demand in six years, according to IDC. Microsoft, Intel, and Sprint Nextel joined the growing list of companies to announce thousands of layoffs in just over a week. Sprint announced plans Monday to lay off about 8,000 workers, mostly in 1Q, to save about $1.2 billion in annual costs. The company suffered about $1 billion in losses during the first three quarters of last year because of a shrinking number of subscribers. The company also will stop contributing to 401(k) retirement accounts and cease tuition reimbursement. Last week, Microsoft said it would cut up to 5,000 jobs by the second half of 2010. Intel plans to cut up to 6,000 jobs. Preliminary figures showed that Sprint, Microsoft, and Intel closed up more than 1.5%. A report from the National Association for Business Economics said Monday that current economic conditions are the worst they have been since it began its industry surveys in 1982. The latest survey, announced Monday, showed demand at record lows and accelerating job losses in 4Q. Thirty-eight percent of firms reported cuts to capital spending, marking another record for the survey. The survey reflected a pessimistic outlook for employment over the next six months and U.S. economic growth for the year. Respondents predicted shrinking profit margins by five-to-one. That added to the list of records for the survey. « New Femtocell From Verizon Wireless Falls Short | Main | How To Succeed At Twitter » |
| Sign Up Now For InformationWeek News Alerts |
This is a public forum. United Business Media and its affiliates are not responsible for and do not control what is posted herein. United Business Media makes no warranties or guarantees concerning any advice dispensed by its staff members or readers.
Community standards in this comment area do not permit hate language, excessive profanity, or other patently offensive language. Please be aware that all information posted to this comment area becomes the property of United Business Media LLC and may be edited and republished in print or electronic format as outlined in United Business Media's Terms of Service.
Important Note: This comment area is NOT intended for commercial messages or solicitations of business.
