The Great Debate UK

from Commentaries:

Tech results give few clues to economy: Eric Auchard

Windows 7 touchscreen demonstrationBy Eric Auchard

LONDON, July 24 (Reuters) - Investors have proved all too ready to interpret positive earnings trends from Intel, IBM and Apple as signs of economic recovery and to justify a continued rally in technology stocks.

Now they are taking the wrong lessons in reverse by reading disappointing results from Microsoft Corp as evidence that a nascent rebound in the economy has stalled.

By the same token, it's mistaken to read the best quarterly results in two-and-a-half years for Samsung Electronics, the world's biggest maker of memory chips, as any indicator of progress on the economic front.

Look past the headlines and you'll find factors specific to each of these companies that say little about any fresh demand for technology in this economy.