Analysts smacked around IBM and Dell today. Guilt by association certainly hurt Intel, the leading manufacturer of PC microprocessors. No surprises with consumer confidence, or the lack thereof. For the third consecutive month, there was evidence that consumers are less than optimistic about the future. For December, the number slumped to 128.3, its lowest level this year.
Folks clearly feel that the economy is slowing down.
Indeed, a number of analysts and economists expect a further slowdown in the economy for the first half of 2001. High fuel prices and a slowing economy are derailing railroad stock prices. One day after it issued an earnings warning for its fourth quarter and announced it will cut about 4 percent of its workforce, Union Pacific along with some others in the industry, took a dive. Union Pacific had cited a sharp downward trend in the economy. Just last week, Norfolk Southern issued a similar warning.