IBM Plunges as Dow Tumbles

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IBM Plunges as Dow tumbles
IBM Plunges as Dow tumbles

IBM Plunges as Dow tumbles

The shares of the tech giant – IBM – plunged by around 2.1% as the Dow Jones index dropped sharply on Tuesday, where its current price per share is $191.37. The major factor behind the tumbling of IBM shares was that the management announced that the employees would face a tough span in the near future where they would be given an unpaid leave with one-third pay.

This measure was taken in order to reduce costs after the demand of computer hardware devices shown some decline in the second quarter of 2013, whereas sales also declined by around 12%.

As far as the technical levels are concerned, the IBM shares are not doing well this summer and cannot be bought blindly amidst this correction mode on Wall Street and as well as the trying circumstances that are being faced by the company in terms of sales and profits. Sustaining above $202.5 a share, bulls would love to enter the market.

Because Media ‘sells’ these Days

One of the most renowned organizations in the media and publications industry, Washington Post Co. soared by nearly 3.8% this week where the price per share has tested $590.49 level. The positive sentiment among the investors is there because the organization has refused to sell its lucrative education division – Kaplan – where it also has hinted that the name of Washington Post Co. is under consideration to be changed.

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The news company is generating sufficient revenues through its online channel via advertising, while the newspaper division remains the least profitable.

The technical levels indicate that there is a critical support at $570-576 area, above which buying is safe for the investors. However, a good retracement may be seen if the shares manage to test the $600 level.

Fashion with Profits

The fashion accessories designer – Fossil Group Inc – is doing pretty well especially in the top-tier class of fashion enthusiasts where the sales continue to move in a smoother pattern for top local and international brands. Fossil Group’s shares rose by nearly 19% where the share price has jumped to $127.4 a share, as the company posted its earnings that outweighed the forecasts made by analysts.

Considering the drive and immense demand for fashion designer dresses and accessories, the fashion industry remains worthy to invest in and especially those firms who are new and are delivering something that the old giants have not. Such firms remain the centre of attraction for competitor firms for acquisition as much potential for growth is there in them.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com