The PC Is Dying, but the Dow Is Flying

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Another day, another intraday record for stock markets. Late in trading, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up 0.4%, while the S&P 500 (SNPINDEX: ^GSPC  ) has risen 0.35%, continuing a bullish run for stocks. The Department of Labor said today that new jobless claims fell 42,000 to 346,000 last week, and with little else to focus on, the market decided that was enough to bid stocks higher.

Pfizer's (NYSE: PFE  ) 2.4% jump has led the Dow today. U.S. regulators have classified cancer treatment palbociclib as a breakthrough therapy, which should speed up its approval process. The pill is in late-stage testing as an early treatment for postmenopausal women with breast cancer. There hasn't been a lot of good news for pharmaceutical companies lately, so the market is latching on to this and running with it.

On the downside, the PC sector took a huge hit yesterday when IDC said PC sales fell 13.9% in the first quarter. This has pushed shares of Microsoft (NASDAQ: MSFT  ) and Intel (NASDAQ: INTC  ) down 5% and 2%, respectively. Investors were clinging to hope that PC sales would stabilize while Microsoft and Intel prepared for their mobile futures, but that doesn't appear to be the case. According to IDC analyst Jay Chou, corporate buyers are putting off PC purchases because computers are lasting longer and users want to avoid updating to Windows 8.

There's really no positive way to spin this, and investors need to start thinking about bailing on the PC if they haven't already. Both Microsoft and Intel have other businesses, but the PC is still at their core, and that's why their stocks are down so much today.

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. Can the company still 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 (3) | Recommend This Article (4)

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  • Report this Comment On April 11, 2013, at 4:03 PM, nodeyen wrote:

    Fed up with the PC dead hypsters. Just because pc sales are down and mobile is up doesn't mean PC is dead. Wall street communitiy gets caught up in the hype that mobile is everything to pump up their growth addiction. Regardless, our society is going down with a large case ADHD because of it. Everyone I know still uses laptops or PC at home and at work. Of course mobile is up when 6 graders all carry smart phones - but they still use laptops for the real work. A smart tablet that can do both works but this is still a pc. Ipad can't even use a thumb drive!

  • Report this Comment On April 11, 2013, at 4:12 PM, oilpatch71 wrote:

    Nothing will replace my desktop PC with two 24inch monitors for trading, reading financial information, email, spreadsheet, word processing among other miscellaneous applications when I am at home. Away I use my smartphone but that's only because I am away from my PC.

  • Report this Comment On April 11, 2013, at 7:32 PM, NickD wrote:

    I think people with more then 1 screen are overly confident they can outperform the market.

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9/26/2016 4:35 PM
^DJI $18094.83 Down -166.62 -0.91%
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Intel CAPS Rating: ****
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Microsoft CAPS Rating: ****
PFE $33.64 Down -0.62 -1.81%
Pfizer CAPS Rating: ****
^GSPC $2146.10 Down -18.59 -0.86%
S&P 500 INDEX CAPS Rating: No stars