Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Intel Corporation (INTC): Better Than Expected Jobs Data Can’t Save It

This morning the Department of Labor released its weekly jobless-claims report, and the numbers were better than analysts had expected. After a big jump to 388,000 claims two weeks ago, only 346,000 individuals sought support last week week, whereas economists were expecting the figure to drop to 365,000. The four-week moving average actually rose by 3,000, to 358,000, and while the report was better than expected, the number of jobless claims remains heightened.

Despite the report, the markets are moving higher today. As of 12:55 p.m. EDT the Dow Jones Industrial Average (INDEXDJX:.DJI) is up 64 points, or 0.43%, while the  S&P 500 (INDEXSP:.INX) has risen 0.41%. The NASDAQ-100 (INDEXNASDAQ:NDX) has struggled today, but it’s currently about a point north of breakeven.

The main cause for the NASDAQ’s sluggishness is a report by the IDC indicating that in the first quarter of 2013, personal-computer shipments fell by 13.9%. Analysts had forecast a decline of 7.7%, and some had felt even that was too harsh an outlook. The reality, however, makes that forecast look downright rosy. This quarterly decline also marked the fourth consecutive year-over-year decline in shipments, and many believe this trend will continue.

 Intel Corporation (NASDAQ:INTC)

The report has caused a number of PC-related stocks to fall today. Because it is easily the industry leader when it comes to PC chips and receives much of its revenue from PC sales, Intel Corporation (NASDAQ:INTC) has seen its stock drop 2.7% today.

Shares of Hewlett-Packard Company (NYSE:HPQ) have fallen 6.5% today. The dogged company’s turnaround had seemed to be proceeding smoothly, but today’s report is a major blow to HP’s hopes. HP makes a sizable chunk of its revenue from the sale of PCs, and if that part of its business falls apart, the whole turnaround story may crumble as well.

Lastly, shares of Microsoft Corporation (NASDAQ:MSFT) have also bombed today, down 4.9%. The IDC report confirms that new PCs are not selling, and therefore Microsoft’s newest operating system, Windows 8, is likely performing even worse than thought. Prior to the launch of Windows 8, a number of industry experts believed that new operating system would help move new computers, and many computer manufacturers had pinned their hopes on the success of the software.

The article Better-Than-Expected Jobs Data Can’t Save Intel Stock originally appeared on is written by Matt Thalman.

Fool contributor Matt Thalman owns shares of Microsoft. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel and Microsoft. Check back Monday through Friday as Matt explains what caused the Dow’s winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter: @mthalman5513.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.