Weak Business Software Maker Earnings

www.ProfitableInvestingTips.com – Weak Business Software Maker Earnings Are weak business software maker earnings a harbinger of an economic decline? Oracle fell after the release of a weak earnings report. On that news IBM dropped three percent. Weak business software maker earnings indicate reduced business spending and can be a signal of an impending decrease in economic activity. Fundamental analysis of Oracle shows a 14% fall in stock price on news that it only increased issuance of software licenses by 2% when it had predicted a much higher number. The news that Chinese export figures have fallen and that factory production is down is consistent with a business slowdown. In Europe it seems that they just cannot win. The drama of the more than two year old sovereign debt crisis drags on despite an agreement to amend the EU treaty to allow for closer fiscal integration. The agreements aimed at buttressing up the finances of the so called PIIGS nations (Portugal, Ireland, Italy, Greece, and Spain) include giving more authority to the European Central Bank to make loans to weak governments and faltering banks. So, the bank just issued $639 Billion in loans to prop up banks. The first reaction of the market was one of relief and stocks rose. They were finally doing something to fix the situation. Then investors started worrying about why the banks needed so much propping up in the first place and stocks fell again. Although weak business software maker earnings have a …