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What recession? Google, IBM, and Intel start 2008 with strong earnings

This was an important week for U.S. technology companies releasing their earnings to Wall Street. Even though we're supposed to be in a recession in the United States, there was a lot of good news reported, led by Google, IBM, and Intel. Listen to an analysis with ZDNet's Larry Dignan.

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This was an important week for U.S. technology companies releasing their earnings to Wall Street. Even though we're supposed to be in a recession in the United States, there was a lot of good news reported, led by Google and IBM. Intel also surprised the Street with better-than-expected numbers. One tech company that continues to struggle through tough times: AMD.

Hear what the big tech companies reported and some of the reasons why earnings were surprisingly strong in this interview with ZDNet's Larry Dignan, a self-proclaimed "financial nerd" who closely follows the earnings of public technology companies and always has excellent insights into what's happening in the tech market.

In this interview, Dignan reports, "Things look pretty good in the tech world."

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About

Jason Hiner is the Global Editor in Chief of TechRepublic and Global Long Form Editor of ZDNet. He is an award-winning journalist who writes about the people, products, and ideas that are revolutionizing the ways we live and work in the 21st century.

8 comments
santosh_kumar
santosh_kumar

The economic downturn or the recession tsunami has had an impact on most of us. However the key factor to remember here is that one should not lose hope. There are some websites where people who have been affected by job loss in the current recession could share their anxieties and problems with others having faced similar problems in the past. One website that is interesting is www.angstcorner.com. I particularly like their punch bag section where one can vent out their anger against their tormentor by virtually ?punching? them with a weapon of choice ! That is quite hilarious . Also visited their Forum section where affinity groups can create their own forums. Forum topics are company specific like ?Lehman Bros?, ?Microsoft? , ?Satyam? , ?Yahoo?, etc for ex-employees of these companies to get together and network and even find a job :) Here you can punch http://www.angstcorner.com/ACPunchBag/tabid/105/Default.aspx

JohnMcGrew
JohnMcGrew

...so it's looking like we're going to finally have one. Another self-fullfilling prophesy. The rhetoric of the presidential candidates certainly isn't helping. The only question is if we're destined to relive the '70s or the '30s.

BALTHOR
BALTHOR

How is Wall Street sanctioned by the Government?If there was no Wall Street it would just be Government regulated fair trade pricing.

ToR24
ToR24

Interesting use of Flash. Thanks for sharing the distraction. It is unfortunate that conditions in one nation are adversely affecting the world economy. Beginning in 2006, the warning bells were ringing after several notable investment banks and exchanges exposed fraud, corruption, general mismanagement and obscene greed. I am curious how conditions have changed in India because of the economic downturn in the United States. Our lesson should have been to become vigilant over public institutions and scrutinize them more thoroughly. It seems that when people are making virtual profit from an investment, few questions are asked, and even fewer answers forthcoming on how that profit was generated or calculated. "You are making money, why are you complaining?" It is only when losses are mounting that everyone is much more interested in how businesses are operated and how the accounting is performed. Part of the problem was caused by low interest rates. People borrowed money to invest in a variety of dubious schemes to beat the inflation margin. They didn't care how the business functioned, just as long as it returned a profit. When people are basically handing out money, those alarm bells should be ringing. The reality is that big money can only be earned with big money, and even higher risks. Safe investments barely manage to keep up with inflation. Little guys are stepping up to a high stakes poker game where the big guys are making sucker bets with dirty stacks. The only hope is that the hangover from the profit party is short lived, and that in the process, we change our view of profit to be the accomplishment of making the world a better place, not just our little corner of it. Because on a globe, there are no corners.

svasani
svasani

I am not sure if Corporate benefit trickles over to the public. Enron made a humongous profit but how much of that helped save the recession (well technically we are not in one--but practically, yes)

ToR24
ToR24

U.S. Department of Labor Bureau of Labor Statistics Mass Layoff Statistics Is there an authoritaive source for employment data? http://www.bls.gov/MLS/ The MLS (Mass Layoff Statistics) is probably one of the most underrecognized programs of the US-BLS (Bureau of Labor Statistics). These statistics are particularly important because mass layoffs tend to reveal vulnerabilities in certain segments of the economy. "The MLS program resumed operations in April 1995 after it had been terminated in November 1992 due to lack of funding. Prior to April 1995, monthly layoff statistics were not available." What industries are the hardest hit? http://www.bls.gov/news.release/mmls.nr0.htm How does it compare to previous periods? http://www.bls.gov/news.release/mmls.t01.htm What states see the most layoffs? http://www.bls.gov/news.release/mmls.t06.htm The largest over-the-year increases in February 2008 average weekly initial claims associated with mass layoffs occurred in administrative and support services (+1,259), electrical equipment and appliance manufacturing (+995), and motion picture and sound recording industries (+366). The largest decreases occurred in transportation equipment manufacturing (-1,190), machinery manufacturing (-511), and construction of buildings (-386). The data suggests are although we headed for a recession, by definition, we're not there yet. The tech industry is directly affected by macroeconomic forces. People without jobs, shelter and food are less likely to buy that next tech gadget. And how many tech gadgets are still made in the USA? It is a world economy and we must find new ways to ensure that everyone can participate and succeed.

Dr Dij
Dr Dij

they get strong earnings from appreciation of foreign currency for their large overseas biz since the US Govt is destroying the US $ by endlessly printing more to inflate our way out of debt. IBM now has the bulk of its operations overseas. And its earnings come from job cuts, outsourcing at other companies. Companies in Zimbabwe also posted strong earnings, and their stock market is at an all time high. Just ignore that there is 6000% inflation, and people who can't take worthless money out of the country have no choice but to invest in its stock market. If the US economy was healthy, the stock market would be at 20,000 to account for inflation. Other headlines today: ATT lays off 4,000 employees (computerworld.com). AMD loses 358 Million (informationweek.com)