Despite positive earnings reports from some key players, the stock market took a hit today. The Dow closed down 22.16 to 11,187.68, the Nasdaq lost 34.19 to 2830.29, and the S&P 500 tumbled 11.13 to 1407.65.
Saga Software Systems Inc. (NYSE--AGS) topped the InformationWeek 100 winners lists, gaining 1-1/16, or 8.6%, to 13-3/8 after the Patricia Seybold Group put out a release advising companies shopping for a software integration product to look at Saga's Sagavista.
In other software-related news, Symantec Corp. (Nasdaq--SYMC) gained 8.4%, rising 2-1/2 to 32-1/4 after being upgraded by Prudential Securities. Earlier this month, Symantec announced plans to launch a new online software shop, which will be managed by Beyond.com. Symantec, a maker of utility software, says the online site will be rolled out over the next four months.
Meanwhile, Hewlett-Packard (Nasdaq--HWP) gained 2-1/4 to close at 116-1/4 after it named Lucent Technologies' (NYSE--LU) Carleton Fiorina as its new president and CEO. Fiorina was group president in charge of sales to phone companies for Lucent. Lucent closed down 5/16 to 78-1/8.
Bellwether stocks IBM (NYSE--IBM) and Microsoft (Nasdaq--MSFT) dropped prior to strong earnings reports for the second quarter and fourth quarter, respectively, released after the bell today.
IBM lost 1-5/8 to close at 134-5/8. IBM's second-quarter earnings exceeded analyst expectations by 3 cents a share. For the second quarter ended June 30, IBM posted net income of $2.4 billion, or 91 cents a share, including a tax benefit of about $700 million, on revenue that increased 16% to $21.9 billion.
Microsoft lost 1-1/16 to close at 98-3/8 before announcing net income of $2.2 billion, or 40 cents per share, compared with $1.357 billion, or 25 cents per share, a year earlier for the period ended June 30. Greg Maffei, Microsoft CFO, said several factors, including the year 2000 and uncertain global economic conditions, could hamper growth next year.
The Business of Going DigitalDigital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
What The Business Really Thinks Of IT: 3 Hard TruthsThey say perception is reality. If so, many in-house IT departments have reason to worry. InformationWeek's IT Perception Survey seeks to quantify how IT thinks it's doing versus how the business views IT's performance in delivering services - and, more important, powering innovation. The news isn't great.