Dell Inc. (NASDAQ: DELL) reported Thursday after the close that fiscal third-quarter profit sank 5% as corporate spending on computers and other technology products declined due to economic concerns. But it seems Wall Street was expecting worse. DELL's earnings were 37 cents per shares in the quarter, 6 cents better than analysts polled by Thomson Reuters had expected. The stock traded nearly 5% higher in pre-market trading (7:41 am). Dell shares ended up declining in the session, down 5.4% by midday trading as analyst cut targets on the stock.
Salesforce.com, Inc. (NYSE: CRM) had investors cheering even louder as it said profit and revenue grew sharply -- 55% and 43% respectively -- in its fiscal third quarter, beating expectations. This could mean that online business software may be better insulated from the economic downturn than conventional offerings. CRM shares gained nearly 10% in pre-market trading (7:39 am). As markts grapple with Citi news, CRM shares declined over 6% by midday trading.
[Update 8:58: Wal-Mart Stores Inc. (NYSE: WMT) named Mike Duke CEO and president, succeeding Lee Scott. WMT shares actually gained 1.7% by midday trading even as investors try to understand the timing of this management change.]
General Motors Corp (NYSE: GM), Ford Motor Co. (NYSE: F) and Chrysler Llc will have to wait a while longer for their sought after $25 billion rescue package. Democrats want to first see the companies produce a convincing plan for rebuilding their companies. Votes on the auto rescue were postponed until next month. Shares of both are trading higher in pre-market trading. GM and Ford shares were down about 2% by midday trading.
The Gap, Inc. (NYSE: GPS) said its profit rose 3% and backed its annual earnings outlook. Earnings beat estimates despite the decline in sales as lower inventory and cost cutting that boosted margins. GPS shares were 4% higher in after-hours trade Thursday. GPS shares have surged 18.5% by midday trading.
Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) said they will temporarily suspend foreclosures and evictions on certain properties to keep people in their home during the holidays as the companies work on a Streamlined Modification program expected out in December. This would affect 16,000 borrowers combined.
[Added 12:12 pm:
Sprint Nextel (NYSE: S) shares surged over 17% after it was reported that Chief Technology Officer Barry West purchased 50,000 shares this month.
Autodesk (NASDAQ: ADSK) shares declined over 23% by midday trading after is released expected forecast worse than estimates and said it would not release a outlook for next year because of the economic turmoil.]
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
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