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Intel decline not as bad as feared

Tuesday, April 16, 2013 - 02:07

April 16 - Summary of business headlines: A drop in sales and profits at Intel was not as deep as feared; Yahoo revenues fall; Coca-Cola inks new bottling deals; Goldman client trading revenues fall; housing starts revisit June 2008 peak; IMF trims global forecast; Stocks rally. Conway G. Gittens reports

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Wall Street somewhat recovered from the beating it took the day before - as earnings helped to bring back some confidence into the market. After the bell, Intel beat earnings forecast with sales largely in line. Both were down from a year ago with the personal computer industry in a slump. The world's largest supplier of chips for PCs giving a second-quarter sales outlook that is at the low-end of forecasts. Revenues were down at Yahoo and the company says it is changing the way it reports total income. Also reporting: net profits at Coca-Cola topped forecasts, but more important for investors - a new deal with five independent bottlers. Johnson & Johnson exceeded quarterly forecasts. thanks to growing demand for its newer medicines. And profits were up at Goldman Sachs but revenue from client trading dropped 10 percent. Shares of Goldman - down on the day; Coke and J&J - rallied; Intel was up but Yahoo down ahead of their results. The housing sector continues to be one of the brighter spots in the economy. New home construction projects jumped to their best level since June 2008. Meanwhile, consumer prices fell in March, the first decline in four months. The International Monetary Fund is trimming its global growth forecast for the year. Its chief economist, Olivier Blanchard: SOUNDBITE: OLIVIER BLANCHARD, CHIEF ECONOMIST, INTERNATIONAL MONETARY FUND (ENGLISH) SAYING: "Recent good news about the U.S. has come with renewed worries about the euro area. Given the strong interconnections between countries, an uneven recovery is also a dangerous one. In some ways the world economy is as weak as its weakest link. So while some tail risks have decreased, it is not time for policymakers to relax." Commodity prices were in focus. Gold recovered some of what it loss in Monday's biggest one-day fall ever in dollar terms. In European action, a poor update from luxury goods maker LVMH - left stocks down across the board.

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Intel decline not as bad as feared

Tuesday, April 16, 2013 - 02:07