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Two Ways: Dell's Outlook a Thorn in PC's Side

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Strengthen your portfolio in good times and bad.

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Dell plays Debbie Downer

Last night Dell (DELL) issued a warning for its current quarter ending July 31, damaging investors' confidence that a quick turnaround in the PC market was in the works. According to Briefing.com, the world's second largest computer maker said it expects lower profit margins because of "higher component costs, a more competitive pricing environment, and an unfavorable mix of product and business-segment demand."

The company did say it is seeing demand stabilization and expects a slight increase in revenue growth. Still, Wall Street didn't seem pleased as shares fell 3.5% in afterhours trading.

From the Bull Pen: In technology, bulls can look to IBM (IBM). A sell stop can be set below $100. Palm (PALM) may also be a buying opportunity at gapfill ($13.50). A sell stop can be set 2% below entry.

From the Bear Cave: Tough being short in this environment. But bears can consider reloading in Sony Corp (SNE) should the stock rally back to resistance near $25-25.50. A buy stop can be set 2% above that level.

Quick Check Around the World

Asian trading closed with the Hang Seng 3.66%, India 3.38%, Shanghai 2.10%, Nikkei 2.34%, and Taiwan 1.66%.

Glancing towards Europe, we see the FTSE 0.63%, CAC 0.49%, DAX 0.80%

As of 8:10 AM EST, S&P Futures are trading +6.50 to 902.00 and Nasdaq futures are +6.3 to 1448.75.

A Look at Commodities

Over in commodities, crude oil is trading +1.05 to 60.74 while gold is +1.20 at 923.70 is morning. Silver is +0.120 to 12.90 and copper +4.05 to 225.35.

The dollar index is -0.2200 to 80.0800.

On the Radar

Economics

08:30 Core PPI 0.1% cons.
08:30 PPI 0.8% cons.
08:30 Retail Sales 0.5% cons.
08:30 Retail Sales ex-auto 0.5% cons.
10:00 Business Inventories -1.0% cons.

Click here for the full trading radar.

Good luck today!
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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