Technology Earnings Update

TECHNOLOGY EARNINGS UPDATE- Several big technology names reported earnings this week and it has helped lift the NASDAQ to its 12th consecutive up day, an unprecedented number. The odds of the trend continuing are not good, but it is also very difficult to fight it. Yahoo (YHOO) reported revenue $1.13 billion, down 13% from one year earlier and slightly below the estimate; EPS of 10 cents versus 8 cents estimate. Apple (AAPL) blew numbers away with EPS of $1.35 vs. $1.17 estimate, revenue of $8.34 billion vs. estimate of $8.2 billion. Guidance for Q4 of $1.18-$1.23, is lighter than estimates and conservative. Sold 2.6 million Mac computers (up 4%), 5.2 million iPhones (up 626%), and 10.2 iPods (down 7%). Also more than 1.5 billion downloads from iTunes.

BOTTOMLINE - Big name technology companies have been laggards for years, but it appears their time in the sun as far as being attractive investments is here again. Investors can pick individual names such as Apple, Google, Cisco, Intel, etc. or go with smaller names. Or there is also the route of an ETF that works great for old 401K’s that are now IRA Rollovers. For example, we own the SPDRs Technology ETF (XLK) for the Moderate Portfolio of The ETF Bulletin at an entry price of $17.05 and currently it is up 16%. The top holdings for the ETF include the big names you recognize: Microsoft, IBM, AT&T, Apple, Cisco, Intel, Google, and Oracle; all making up at least 4% of the allocation. For more on ETF alternatives please contact PFG at info@pennfinancialgroup.com.