InternetDell Disappoints

Dell's warning that weakness is spreading could endanger the stock market's recovery.

Stocks posted strong gains for a second day on Thursday, but Dell (NASDAQ: DELL) threatened to undo the rally after the close when the company posted disappointing quarterly results. Dell's 11 percent sales growth to $16.4 billion was nearly $500 million above estimates, but the company's earnings of 33 cents a share were three cents below forecasts, as the company was hit by restructuring and investment costs and a move into lower-margin businesses like retail. But the company's comments that economic weakness may be spreading drew the most attention. "The company sees continued conservatism in IT spending in the U.S., which has extended into Western Europe and several countries in Asia," the company said in its earnings press release. Notebook sales were particularly strong, up 26%, but the results were a disappointment after the company's stellar April quarter, and its shares fell 10% in after-hours trading. Stocks posted strong gains during the day after the U.S. Commerce Department said second-quarter growth was much strong than initially reported, up 3.3%. The rally was once again led by financial stocks. On the Nasdaq's... [ Read more on www.internetnews.com ]

InternetWeak Economy Could Sap Handset Growth

Gartner's latest research shows some weakness in growth rates.

InternetMySpace overtakes Yahoo in display ad views: report (Reuters)

Reuters - Yahoo Inc has lost its lead of the U.S. market for online display advertising to MySpace and its parent company News Corp's Fox Interactive Media and MySpace, new industry data shows.