Intel did its part (guidance being the key since it is almost "in the bag" these companies will crush earnings), and key resistance on the S&P 500, rather than being fought during normal market hours, should be danced over in the premarket. Already we saw a big reaction at 4:15 PM. All systems go - the next key resistance area is S&P 1120, and then the highs of last month of 1130. A move over that level is key for bulls as it would mark the first new high in a while. I shall be selling long exposure tomorrow morning into the jubilee. The next level of interest for me on the long side is a clearance of S&P 1130.
- Intel has posted its biggest profit in a decade as the company benefits from a strengthening computer market and more sophisticated factories. (translation: less need for humans = lower costs) Intel Corp. reported after the market closed Tuesday that net income was $2.89 billion, or 51 cents per share, in the quarter ended June 26. That compares with a loss of $398 million, or 7 cents per share, a year ago. Analysts have expected a profit of 43 cents per share.
- Revenue was $10.77 billion in the latest period. Analysts surveyed by Thomson Reuters expected $10.25 billion.
- Gross margin was 67%, well above the guidance range of 62%-66%. (key key key measure)
- Intel's revenue forecast of $11.20 billion to $12 billion for the third quarter is higher than analysts' projections for $10.92 billion.
- In a statement, CEO Paul Otellini said that strong demand from corporate customers drove “the best quarter in the company’s 42-year history.”