The Tech sector opened higher in Tuesday’s session with the broader market after several big-name U.S. companies posted strong results for the third quarter. The Dow Jones Industrial Average(INDEXDJX:.DJI) rose +108.71 (0.81%) to 13,532.94in the first half-hour of trading. The S&P 500(INDEXSP:.INX rose +10.50 (0.73%) at 1,450.63 and the NASDAQ Composite(INDEXNASDAQ:.IXIC) to 3,082.02, +17.84 (0.58%).
Nokia Corporation (ADR)(NYSE:NOK) shares gapped up this morning for the second consecutive session and rose 4.50% to $2.80 as the struggling phone company is all set to report its quarterly earnings this Thursday. The Wall Street is expecting the company to report lower sales and expect the company’s market share to fall further amid lack of new device. However, apart from earnings, investors need to focus on the next week’s launch of Microsoft’s Windows Phone software 8, which Nokia has called an “important catalyst” for its ailing smartphone devices.
Nokia, which has seen immense competition from Apple and Samsung, has been struggling to regain its lost market glory as Asian competitors are further putting pressure on the company’s lower cost segment. After gaining first position for world’s No. 1 cellphone maker, recently Samsung overtook the position as per Gartner research firm.
So, this time analysts as well investors would keen to know how the company has been faring after its last year’s partnership with Microsoft Corp., which is largely targeted to U.S, where the company has shown lackluster performance.
Although the stock has bounced back 71% from its 14-year low, the stock is still trading lower by 42% for this year.
Apple Inc.(NASDAQ:AAPL) shares continued to trade in the narrow range after showing an usual weakness over the past few weeks as investors have digested the company’s recent launch of iPhone 5, following which the stock made an all time high of $705.07. Now, investors are expecting Apple to launch of the smaller version of the iPad. The event, which can be attended by invitation only, is to be held on the 23rd of October, and according to sources, it will probably be held at the Apple Town Hall Auditorium.
Apple had launched their first tablet, the iPad, in 2010, with the idea that this is what an ideal tablet should be sized like. But a number of other companies launched smaller tablets, and various analysts talked about how they are equally useful, and how their small size increases their portability. They also mentioned that a smaller iPad might impact the ability for users to repair own devices, forcing them to go to professional 3rd party repair services to get their devices fixed and might be a deterrent for some customers.
Clearwire Corporation(NASDAQ:CLWR) is showing lackluster day this morning after the recent run up and it should not surprise the investor community as the stock had doubled as of yesterday in the past one week. The stock is now down 12.60% to $2.36, after falling as much as 23% earlier in the session. Investors lost faith in the company this morning on report surfacing that the recent acquisition of Sprint Nextel Corporation (NYSE:S) by Softbank, will not force Sprint to acquire CLWR. The reason stated in the report is that Sprint has already right to get spectrum service till 2013 it has paid $900 million for such service. Moreover, One analyst said that the current valuation of CLWR is not attractive and this could be another reason. However, it doesn’t mean that CLWR will not be acquired as this has not made public. So, keep your eyes on CLWR for further developments.
A123 Systems, Inc.(NASDAQ:AONE) shares are the biggest loser and slumped 74% as the company has officially files for bankruptcy protection. The electric car battery maker warned last night it might file for bankruptcy after defaulting on a loan payment. It remains to be seen how the filing affects A123′s financing deal with China’s Wanxiang Group.
International Business Machines Corp.(NYSE:IBM) is trading higher by 0.70% ahead of its quarterly earnings today after the market hours. Analysts, on average, are expecting earnings of $3.61 per share on revenue of $25.4 billion. IBM earned $3.28 per share last quarter, after subtracting certain items, on revenue of $26.2 billion.