Tuesday, February 26, 2008

IBM buyback lifts stocks

IBM's (IBM) announcement raising slightly the low end of it's earnings forecast for 2008 & a continuation of it's large stock buyback brought out buyers. IBM, a DOW stock, is up 3.95, Dow ahead 132, advancers ahead of decliners 2-1 & NAZ is up 25. The advance is a major achievement in the face of plenty of gloomy news.

The Conference Board reported that consumer confidence plunged in Feb to 75 (Jan number was 87), lowest level in 4 years. Home prices had a record decline last year. Wholesale prices jumped 1% in Jan. The market generally worries about such an increase fearing it will make the FED less aggressive in cutting interest rates. Target (TGT) reported sluggish sales in Q4, but ahead of expectations sending the stock up 1.89. Google (GOOG) is down 33 on news that paid click growth is turning sluggish, not what investors want to hear from a growth stock. All this adds up to a lot of gloomy news, but since writing this piece Dow is up another 35. Today will be a day when buyers rule.

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