Tech companies are carrying markets today following a notable earnings report from Intel
While the Intel report pushed markets up, investors did not know how to digest a mixed housing report that showed a rise in housing starts but a drop in applications for building permits, according to a report from the Commerce Department. Housing starts surpassed expectations of 745,000 to reach 760,000 starts. However, Ben Bernanke will likely shake up markets again this afternoon during the second part of his semi-annual testimony to Congress. After yesterday's testimony left the door open for more stimulus measures, investors will once again analyze his words for hints for additional quantitative easing. The Fed will also release its anticipated Beige Book survey, which will discuss the business climate in 12 U.S. regions.
Dow in focus
As you might expect, Intel surged and rose to the top of the Dow. The chip maker announced that net income fell only slightly, and lowered its forecasts for the third quarter far less than analysts had feared following competitor Advanced Micro Devices' dramatically lowered projections. In the conference call, Intel CEO Paul Otellini warned of a "more challenging macroeconomic environment," but forecast a positive outlook for Intel with Microsoft's Windows 8 coming out after the third quarter and $699 Ultrabooks to be sold in the fall. Shares of Cisco
While the tech sector rose more than 1.5% as a whole, financials posted the only sectorwide loss. Bank of America
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Foolish intern Charlie Kannel owns no shares of the companies mentioned above. The Motley Fool owns shares of Citigroup, Microsoft, International Business Machines, Intel, Cisco Systems, JPMorgan Chase, and Bank of America. Motley Fool newsletter services have recommended buying shares of Intel, Microsoft, and Goldman Sachs. Motley Fool newsletter services have also recommended creating a bull call spread position in Microsoft and a synthetic long position in International Business Machines. The Motley Fool has a disclosure policy.
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