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Google lags Q4 forecasts, Intel beats

Thursday, January 19, 2012 - 01:57

Jan 19 - Summary of business headlines: Mixed results from Silicon Valley as Intel, Google, Microsoft and IBM release quarterly results; Kodak files for bankruptcy protection; Drop in jobless claims, pick-up in regional factory activity point to continuing U.S. economic rebound. Conway G. Gittens reports.

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PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL Intel kicked-off a busy reporting season with better-than-expected sales and profits for the fourth quarter. Sales at Google, excluding fees paid to partners, came in below forecasts and net profits were also shy of expectations. Ahead of the report, Scott Kessler of Standard and Poor's Capital IQ warned search metrics would be key. SOUNDBITE: SCOTT KESSLER, INTERNET ANALYST, STANDARD AND POOR'S CAPITAL IQ (ENGLISH) SAYING: "Notwithstanding all of the things Google has done over the last many years - search is really still what drives the businesses, the financials and the stock, and if there is any kind of concern about that, we don't think that necessarily bodes well going forward." Shared headed lower in after-hours trading. Earnings at Microsoft were ahead of forecasts but revenues matched expectations. IBM's sales were a little underwhelming, though earnings beat. Meanwhile, profits were up American Express. No earnings from Eastman Kodak, but the iconic American photography company filed for bankruptcy protection. Ironically, Kodak introduced the world to digital photography, but ultimately fell behind in the switch to a digital world. Turning to the economy, where the recovery appears to be holding shape through the new year: The number of Americans joining the unemployment line is now the smallest in about four years, and consumer prices were unchanged in December. Also in December, new housing construction slowed, but factory activity in the Mid-Atlantic region continued to expand in January. As for the reaction: Wall Street posted modest gains as earnings from Bank of America and Morgan Stanley did little to disappoint. And European stocks rallied on the back of strong debt auctions from the euro zone. Conway Gittens, Reuters

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Google lags Q4 forecasts, Intel beats

Thursday, January 19, 2012 - 01:57