IBM Slumps Due to Sluggish Tech Spending and 3 Dow Movers Turning Heads
The Walt Disney Company (NYSE:DIS) purchased Club Penguin five years ago and now the latter’s co-founder Lane Merrifield will step down, his exit being effective immediately, according to AllThingsD. Most recently, Merrifield has been executive vice president of Disney Online Studios.
Hewlett-Packard Company (NYSE:HPQ) is seeing declining demand in the PC market and has been passed by Lenovo Group (LNVGY) to become the world leader last quarter, which is a good reason for it to expand into smartphones, according to Bloomberg.
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International Business Machines Corporation (NYSE:IBM) shares were down more than 5 percent Wednesday, subsequent to a report of weaker-than-anticipated revenue for a fifth straight quarter, along with its failure to increase its full-year 2012 guidance for the first time in the year. However, the firm backed current estimates of a minimum of $15.10 per share. Shares are lower among fears that it’s a victim of the same weak tech spending that is impacting other firms in the sector, according to Barron’s, which does not think that there is justification to immediately jump into the shares on weakness. Further, Barron’s Roundtable member Fred Hickey, who is editor of The High Tech Strategist newsletter, said that, “IBM is richly priced and it’s a good time to look for an exit.”
JPMorgan Chase & Co. (NYSE:JPM) affiliate J.P. Morgan Ventures Energy Corporation, or JPMVEC, responded to the Federal Energy Regulatory Commission’s Show Cause Order with a letter that reads in part, “At the outset, JPMVEC apologizes for putting the Commission in the position of even having to consider the issues in the Show Cause Order. JPMVEC understands how important it is that information submitted to the Commission be accurate and complete. JPMVEC believed it was discharging this obligation here, but it now is apparent that JPMVEC made mistakes. JPMVEC regrets those mistakes and the company and the individuals involved take full responsibility… This is not a case involving allegedly false statements about JPMVEC’s market activities, or falsified data. This is, instead, a case about statements made by JPMVEC concerning documents it had already produced in a timely fashion to the Commission…In view of the nature of those mistakes and the circumstances in which they were made, we respectfully submit that suspension of JPMVEC’s market-based rate authority is not an appropriate or proportionate response.”
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