By Sinead Carew
NEW YORK (Reuters) – A strong outlook from IBM and decent results from Intel Corp and Microsoft Corp suggest that corporate decision makers are shaking off nervousness about economic growth and boosting spending on technology.
IBM, the world’s largest technology services company, easily beat Wall Street’s fourth-quarter profit expectations and promised earnings growth of 10 percent this year.
Intel, the leading microchip maker, announced ambitious spending plans after reporting quarterly results that topped scaled-back analyst forecasts.
Microsoft’s results were largely in line with expectations, with growth in its servers and tools business offsetting weakness in Windows sales to PCs.
“Those results look largely favorable,” said JMP Securities analyst Alex Gauna. “So far what we have seen in technology, looks like we are turning the corner and things are getting better. Turning the corner in terms of cleaning the excess inventory in the channel and seeing a better demand outlook.”
Microsoft, IBM and Intel have a combined market capitalization of about $580 billion, representing 15 percent of the Dow Jones industrial index. Shares of IBM shares rose 3 percent in extended trading after its results, while Microsoft shares rose 2 percent and Intel shares rose 1 percent.
The only downer in the tech world on
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