If You Think the Dow's Rocking Today, Wait Until Tomorrow

If you think that the Dow Jones Industrial Average (INDEX: ^DJI  ) is moving today -- and it is, up a robust 1.3% as of 2 p.m. EST -- just wait until tomorrow.

Hewlett-Packard (NYSE: HPQ  ) , one of the 30 components that make up the popular market gauge, reports its fiscal fourth-quarter results on Tuesday morning.

Investors aren't holding out for much. They saw HP rival Dell (Nasdaq: DELL  ) disappoint last week, delivering double-digit percentage declines in revenue and profitability. HP's results probably won't be that scary; analysts see revenue and earnings slipping 5% and 3%, respectively.

However, it's safe to say that any significant surprise on either end of the spectrum would move the Dow higher or lower.

It's not just about HP's own impact in the 30-stock index. Fellow Dow components Intel (Nasdaq: INTC  ) and Microsoft (Nasdaq: MSFT  ) are also likely to move if HP offers up a surprising report. If it sheds some light on how PCs and laptops have been selling since the rollout of Microsoft's Windows 8, it will really get the Dow moving one way or the other.

Intel has tried to wean itself from the PC market. Its chips and microprocessors can also be found on some tablets and smartphones, but not enough -- for now. Intel is still at the mercy of the PC market, and that's a niche that's been stagnant in recent quarters.

Microsoft naturally has a lot riding on HP's report. HP is the world's largest maker of PCs, and most of its machines run Microsoft's operating system.

HP's perspective on the near term will probably be a bigger factor in moving all three of these Dow components than its quarter that ended in October.

One way or another, the Dow will probably move on Tuesday because of HP.

Mr. Softy's on the move
It's been a frustrating path for Microsoft investors, who have watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In this brand-new premium report on Microsoft, our analyst explains that while the opportunity is huge, the challenges are many. He's also providing regular updates as key events occur, so be sure to claim a copy of this report now by clicking here.


Read/Post Comments (0) | Recommend This Article (10)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2119769, ~/Articles/ArticleHandler.aspx, 12/18/2014 6:51:13 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement