Friday, January 25, 2008

Microsoft to the rescue ?

For lack of a better way of putting it, it's been a been outright scary week for the world's stock markets.

With the markets in literal free fall at the beginning of the week, the US Federal Reserve made a hefty emergency rate cut of 75 basis points. We commented on it here, and, in fact, it wasn't enough to dispel the fear and selling.

The markets finally leveled off somewhat yesterday after word came that an agreement was near on an economic stimulus package here in the US.

Then, Microsoft reported earnings. In a repeat performance of last quarter only better, Microsoft literally trashed all predictions and expectations, this time reporting record earnings for their second fiscal quarter and providing significantly higher guidance for their entire year which ends June 30th.

In after hours trading in the US, Microsoft (NASDAQ: MSFT) was up $1.84 to $35.09.

Other 'search-related' technology stocks also recovered a bit (in after-hours) with Google (NASDAQ:GOOG) reaching $588.00 and Yahoo (NASDAQ:YHOO) also recovering losses to $22.05.

The report couldn't have come at a better time as analysts were mixed on a whether a recession in the US would effect the ever-growing technology sector.