Dow Jones Industrials average 10,856 +428 pts +4.1%
S&P 500 1,169 +54 pts 4.87%
Nasdaq Composite 2,397 +128 5.68%
FTSE 100 5,718 +218 pts +3.9%
With the DOW Jones within touching distance of 11,000 it seems likely that the growth in Q2 will be more muted after this very strong start to 2010.
Thursday, April 1, 2010
Strength in chip demand confirmed my Micron results
Micron Technology (MU) reported after the close last night that it had moved back to a quarterly profit as prices and volumes of DRAM memory chips continued to improve. Fiscal second-quarter profit were $365 million, or 39 cents a share (versus expectations of 24 cents), compared with a loss of $763 million, or 99 cents a share, for the same period in 2009. Revenue was $1.96 billion versus analyst expectations of $1.82 billion, up from $993 million for the same period the previous year. The company said sales of its DRAM products rose 24% sequentially, boosted by a rise in unit sales and in average selling prices. However, revenue from NAND Flash products were down slightly sequentially due to small fall in average selling prices.
The company's shares fell nearly 4% in regular hours trading to finish at $10.37 but climbed back to $10.67 in after hours. A position in Micron was initiated on Monday at around $10.4 and closed at $10.8 on Wednesday. The run in the semiconductor's seems to be running out of steam. Micron has risen from below $4 in the last year on the market recovery.
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