Hewlett-Packard Company (HPQ), Microsoft Corporation (MSFT): Consumer Sentiment Falls, and the Markets Follow

Page 1 of 2

Although we don’t believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes — just in case they’re material to our investing thesis.

Hewlett-Packard Company (NYSE:HPQ)

On the last day of August, a month which has not been good for investors, the major indexes look as if they will close lower for both the session and the past 30 days. As of 12:45 p.m. EDT the Dow Jones Industrial Average 2 Minute (INDEXDJX:^DJI) is down 0.29% for the day and 5% for the month. The S&P 500 (INDEXSP:^GSPC) is down 0.3% today and 4% for the month, while the Nasdaq is down 0.72% today and 1.5% for the month.

One of those reasons for today’s market dip is the slight drop in consumer sentiment. The University of Michigan Consumer Sentiment Index read 85.1 in July, and in August the figure slipped to 82.1. July’s result was the highest level we had seen in nearly six years, so the small pullback from that high shouldn’t be much of a concern. And given that economists had been expecting a reading of 80 for August, the result is a nice surprise. But at the end of the day, sentiment is lower than it was last month, and that’s never good.

Big losers on the Dow Jones Industrial Average 2 Minute (INDEXDJX:^DJI)
Shares of both Microsoft Corporation (NASDAQ:MSFT) and Hewlett-Packard Company (NYSE:HPQ) are down about 1% each today, and the lower consumer sentiment report may be among the culprits. As kids head back to school, whether it be college or high school, these days they all need computers. Given low confidence in the economy and especially wage growth, parents are likely hesitant to pay up for a new laptop or PC, opting instead to let their children use older models.

Also, a report came out yesterday from the IDC stating that emerging markets — an area in which PC growth was still happening — are now slowing down. The IDC said tablets are hurting PC demand in these markets, just as they have in more developed areas of the world. In the past, China and India helped offset declines in PC sales in the U.S. and Europe, but that will no longer be the case.

Shares of UnitedHealth Group Inc. (NYSE:UNH) are down 0.9% today after news broke yesterday that Aetna, another health insurer, had pulled out of another health insurance exchange. Part of the ObamaCare health plan is that the insurance companies will be part of an exchange, which is supposed to help offer the lowest prices for insurance.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!