Some exchange traded funds (ETFs) headed lower this morning after consumer sentiment dropped to its lowest point in nearly 26 years. Technology ETFs weren’t helped by Microsoft’s disappointing earnings forecast.
The Reuters/University of Michigan consumer sentiment index read 62.6 for April, a 9.9% drop from a month ago. It’s the lowest reading since the 1980s, reports Tim Paradis for the Associated Press. Consumer spending is about 70% of U.S. economic activity, so Wall Street is worried.
Microsoft (MSFT) announced earnings that were in line with expectations, but it also faced comparisons with a rosier picture one year ago. The company said that for its fourth quarter, sales would be between $15.5 billion and $15.8 billion, CNNMoney says. Analysts are predicting $15.6 billion. Investors seemed mostly unimpressed by it all, though.
The deadline for Yahoo (YHOO) to accept Microsoft’s takeover offer is tomorrow. If no agreement is reached, Microsoft will consider its next step.
- iShares Dow Jones U.S. Technology (IYW): down 8% year-to-date; Microsoft is 12.4%; Yahoo is 1.9%
- Technology Select Sector SPDR (XLK): down 8.9% year-to-date; Microsoft is 10%; Yahoo is 1.7%
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.