After a late rally yesterday, stocks are flattish this morning. Treasuries are higher, though, along with gold, silver, and crude oil. The dollar is notably lower.
Two longstanding technology titans just dropped some troubling earnings news. Dell Technologies Inc. (DELL) missed revenue targets due to lackluster personal computer demand, sending its shares sharply lower. Meanwhile, HP Inc. (HPQ) slid after consumer PC sales fell 4% in the most recent quarter. Operating margins also dipped.
HPQ, DELL, BBY (5-Day % Change)
While Artificial Intelligence (AI) investment remains strong in the technology industry, consumer PC spending isn't keeping pace. Case in point: Consumer electronics retailer Best Buy Co. (BBY) just warned about its own earnings yesterday. IDC also reported that global PC shipments slumped to 68.8 million in Q3.
Mortgage rates rose for eight out of the last nine weeks. So, when they dropped in the most recent week, buyers were ready to pounce. An index that tracks purchase mortgage application activity surged 12.4% in the week ended Nov. 22, pushing it to its highest since February. The average 30-year loan goes for around 6.86% now, according to the Mortgage Bankers Association.
Finally, your morning cup of coffee will likely get more expensive in the weeks ahead. Coffee futures just rose another 3%, adding to a rally of almost 70% this year. Arabica beans are now going for the highest price since 1977 thanks to unfavorable weather in key coffee-growing regions like Brazil and Vietnam.
