Dell, Income Data Sour Stocks

3-day streak of gains broken on weak computer profits, lower income figures
By Nick McMaster,  Newser Staff
Posted Aug 29, 2008 3:24 PM CDT
Dell Inc. Chairman and CEO Michael Dell speaks at the launch of a new line of Latitude and Dell Precision laptops in New Delhi, India, Wednesday, Aug. 13, 2008.    (AP Photo/Manish Swarup)
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(Newser) – Stocks lost value today on disappointing second-quarter earnings from computer maker Dell and news of declining personal incomes, MarketWatch reports. Trading remained light ahead of the Labor Day weekend as the Dow lost 171.22 to close at 11,543.96. The Nasdaq dropped 44.12, to 2,367.52, while the S&P 500 fell 17.85 to settle at 1,282.83.

Dell reported a 17% drop in profits for the second quarter; Deutsche Bank, in turn, cut Dell’s price target, and shares plummeted 13.8%. Economic news added to Dell’s dismal report: Consumer spending decreased 0.4% in July, while personal incomes fell 0.7%, the Commerce Department reported.

  • For August, the Dow gained 1.5%, the Nasdaq climbed 1.8%, and the S&P 500 added 1.2%.