The market is just weird on the first week. If I had more time, I would do a regression of the past 20 years and see if there is a trend for the first week of the new year. I am sure people have done that before.
Some rumors about a possible merger between SCi and Midway. I think that will be a good step for both since they are not doing that great and they could use the combined momentum to survive against EA and Activision/Vivendi.
Google, Amazon, Yahoo, eBay, IAC, Expedia, Salesforce.com, Ominiture, ValueClick, Monster.com, Orbitz, Priceline, CNET, etc are expected to do well in 2008 according to JPMorgan. JPMorgan expects 34 percent earnings growth in 2008 for the Internet stocks it covers versus 8 percent earnings growth for the S&P 500. Interesting … need to do some research on this one
In the Games industry, Midway, Ubisoft, THQ, Activision, SCi, EA, Take Two, MS, and Sony are all down. Ubisoft has good numbers from last year but they are delaying the release of some games this year. Assasin’s Creed must have done better than expected.
Surprisingly, Yahoo and Amazon are both up a little bit. Yahoo went down on 12/31 to $23.20, now its at $24.01. Even Google and Baidu are down today.
Semiconductor is down … almost every company I track is down; Intel, AMD, TI, Cadence, Altera, Xilinx, Mentor Graphics…etc. Also all networking companies are down; Cisco, Juniper, Nortel, Foundary, and others. Same for Apple, Sun, HP, and even IBM. Not a pretty first trading day!
More rumors about Intel acquiring Nvidia are surfacing. Nvidia is down to $33.04 although it has been picked as company of the year by Forbes.