Saturday, September 23, 2023
Hometrader talkIBM earnings take the spotlight as banks exit stage left

IBM earnings take the spotlight as banks exit stage left

We start the week with S&P 500 just off its historic highs. With bank earnings season largely over, the main focus will turn to tech stocks today.

AMD, IBM, Texas Instruments and Xilinx will all report after the close tonight.

Elsewhere

1)China's gross domestic product (GDP) growth was reasonably firm at 7.7 percent, though down from 7.8 percent in the fourth quarter. Retail sales for December were up 13.6 percent year over year, slightly below November but still solid. Industrial output was up 9.7 percent, down from up 10 percent in November.

The was up 0.9 percent, largely because the People's Bank of China (PBOC) injected much-needed reserves into the monetary system, pushing interest rates down. Another sign of speculative trading in China: 7 of the 8 new IPOs had their first-day trading halted after climbing over 45% today.

2) Lenovo is up 2.7 percent in Hong Kong on word that it is in talks to acquire IBM's low-end x86 server hardware business. This is an excellent illustration of how the global tech food chain is working. IBM sold its PC business to Lenovo in 2005 when the margins got too thin. Now Lenovo is looking to diversify from its operations away from the PC business.

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