Market Minute: Dell Earnings Tumble; Retailers Report Soft Sales

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New concerns about the health of the bull market, and a big day for Dell. Those and more are what's in business news Friday

The Dow Jones industrial average (^DJI) tumbled 225 points Thursday, its worst loss in nearly two months. The Standard & Poor's 500 index (^GPSC) fell 24 points and the Nasdaq composite index (^IXIC) slid 63. The stock decline sent the yield of the 10-year Treasury to its highest level in two years.

dell earnings carl icahn pc computers stocks investing wall street
Sean Gallup/Getty Images
There's still a battle going on to buy Dell (DELL), the company, but there's not a lot of interest in buying Dell computers. The PC-maker reported a 72 percent drop in quarterly earnings Thursday. Revenue was flat, which was actually a bit better than expected.

A court hears arguments Friday on billionaire Carl Icahn's effort to block CEO Michael Dell from taking the company private. The stock is trading at about $13.75 a share, close to the price being offered by Michael Dell's buyout group.

Nordstrom's (JWN) earnings rose 18 percent, but its shares are set to fall. The upscale retailer lowered its forecast for the rest of the year. Meanwhile, shares of menswear retailer Jos. A. Bank Clothiers (JOSB) are set to tumble after slashing its earnings guidance.

Sony (SNE) has agreed to carry Comedy Central, MTV and other Viacom (VIA) cable channels on its planned Internet-based TV service. It's a big boost for Sony, which is racing against Google (GOOG), Intel (INTC) and others to secure content rights. Sony wants to use its PlayStation to provide an alternative to cable and satellite companies such as Comcast (CMCSA, CMCSK), Time Warner Cable (TWC), Dish Network (DISH) and DirecTV (DTV).

There's also a new competitor in the business to process mobile payments. Facebook (FB) will make it easier for its users to buy products when using the apps of its partner companies. EBay's (EBAY) PayPal unit and a division of Google dominate the field right now.

And Ford Motor (F) has reversed course. It will make a one-time payment of $550 to owners of its C-Max model, after lowering the advertised mileage on the hybrid by up to seven mpg.

-Produced by Drew Tractenberg.


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8 Comments

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clwgeorgetownlaw

Dell computers are garbage & when I called "customer service" I literally could not understand the tech people in India. All that they were apparently concerned about was (1) charging my "cdetit cart" just for the honor of talking to them & (2) getting my signed up for an ink cartridge purchase program -- Never again will I consider a Dell product & I have no idea how they are still in business.

August 16 2013 at 5:25 PM Report abuse rate up rate down Reply
jeslats

funny how bo says the recession is over, yet he still goes on vacation while americans go hungry

August 16 2013 at 4:25 PM Report abuse rate up rate down Reply
Bill

Many of the motels weren't full but the streets were packed last week. Isn't anyone spending money?

August 16 2013 at 2:06 PM Report abuse rate up rate down Reply
RMS

Will never buy another Dell product again. The last laptop I bought from Dell lasted 18 months, and the hard drive went. Dell customer service was useless. Wasn't worth the cost to fix it, bought a Toshiba and have been very happy with it. The odd thing about it was that my previous Dell laptop lasted seven years.

August 16 2013 at 1:57 PM Report abuse rate up rate down Reply
rbreinhard

This is no great surprise. Their computers are crap. The last one I had I ended up replacing the motherboard 3 times in 5 months. I will never again get a Dell computer.

August 16 2013 at 12:05 PM Report abuse rate up rate down Reply
Peter

Dell deserves to go bankrupt. I bought one in April; by August I had returned t three times for repair and it still didn't work properly. Each time they replaced the hard drive. ( Hey, if replacing the drive didn't work the first time, why do it again? and again?) I begged for a new one because obviously there was a problem, but was refused; the phone technician, whom I could barely understand, assured me that the problem would be taken care of. Nonsense...this one was a lemon and Dell refused to replace it. NEVER buy Dell. There's a reason they refer to dealing with Dell as "Dell hell". They do not stand by their product.

August 16 2013 at 11:40 AM Report abuse +2 rate up rate down Reply
ddobson268

Dell is wanting to take its company private. Now they report poor earnings. maybe this is a coincidence that there company is worth less now so they can buy it cheap. Maybe the SEC should look in to this?

August 16 2013 at 11:37 AM Report abuse rate up rate down Reply
Max Lilly

My Dell Product hard drive failed so I took my Computer down to "The GEEK Squad", they replaced my hard drive, but I lost a lot of data, including drivers. I called somewhere in India to talk to a service tech about getting my drivers back for $29. I gave full access of my computer over to this voice that was barely audible with a background of a couple of dozen other technicians. He installed the drivers and with a gust of wind showed me that I had acquired some 2600 viruses and for a small fee he could erase them. Funny, just a week ago I had my hard drive replaced with a internet security "webroot" program installed. Undoubtably this was "FRAUD" for trying to misrepresent a problem that was not there. DELL, you cheap b tards, you have lost me to another product that is American supported. So why the high pressure? You only pay these "Indians" pennies on the dollar to rip people off. You are Liars and thieves. FAAQ

August 16 2013 at 11:02 AM Report abuse +2 rate up rate down Reply
lwickm

Allow the damn sale to happen and stop fighting it................give DELL a chance to go private and turn the company around!!

August 16 2013 at 10:37 AM Report abuse rate up rate down Reply
edwels610

We need a manufacturing base. Im sick of hearing these politicians
yapping about taxes, its not about taxes, we are becoming a
service economy, look at countries with service economies,
they are all poor. Our politicians and business leaders sold
out the USA to China.

August 16 2013 at 10:27 AM Report abuse rate up rate down Reply