The Market Turns Its Back On Big Tech (MSFT)(INTC)(ORCL)(DELL)

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What they say about big tech must be true. IT spending at companies is falling as businesses cut back across every expense category they can find. Software and hardware upgrades are put off to the side for another year.

The anticipated contraction in capital spending and technology purchases probably has already hit the market. If so, third quarter earnings at firms including Microsoft (MSFT), Dell (DELL), Intel (INTC), and Oracle (ORCL) are going to be poor and guidance may be worse.

The odor from the calamity has already reached Wall St. On a day where almost every major stock is advancing, shares in the most important technology firms are down. Only one of them needs to warn on earnings and it will pull the balance of the group down further.

Douglas A. McIntyre