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New York Stock Exchange suffered a big decline mainly because the multinacional conglomerate General Electric (GE) posted an unexpected 6% fall on their quarterly profits.

GE stock fell 13% after this disappointment, and its price seems to be at an attractive value for long term investors. Currently, General Electric Co has a share price of $32,05 and it very near its 52 week low; $31,65. Many people expect this company to hit $40 in less than an year. Let´s see GE analysis in order to predict it´s future behaviour.

As many of us know, GE is a highly diversified, global industrial corporation. Its main businesses are six: commercial finance, healthcare, GE money, industrial, infrastructure and NBC Universal.

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Most of the big companies are headed to a lower open since bad news are coming more and more frequently. Earning announcements are dissapointing investors, and these are slowly getting a picture of the real economic situation: recession.

Bernanke has anticipated as that recession is “possible”. I believe it´s a fact. And although investors are trying to be optimistic and ignoring bad news, nowadays bad news are all that appear and the dimension of the US economic crisis is starting to be comprehended.

Financial companies reporting date is getting nearer, only 10 days from now the truth will be publicly known.  Many clues have been given to us by Bernanke, Greenspan, Buffett, and many other important investors/authorities, and they all expect a negative future.

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Apple Inc (AAPL) designs, manufactures and markets consumer electronics and computers, and now has it´s own operating system, Mac OS X. Revenues are principally derived from the iPod music player, Macintosh notebooks and the iPhone.

Today, April 9, Apple´s stocks are worth $150,8 each, and its price is above the 50 day moving average, indicating an uptrend.

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The technology stocks have had a massive decline in the last 6 months, and are currently at prices that could be interesting. The difficulty is to realize if bottom is in or the trend will continue.

As various of our readers requested via e-mail to info@quickstockanalysis.com, we will state our opinion about the current valuation of the tech stocks. This sector has received hard news lately:

• Yahoo´s decline on Microsoft´s offer
• Apple has been downgraded by Morgan Keegan
• Commodities very expensive, reducing tech companies´ margins
• AMD forecasting 1Q revenues below expectations and plans to cut 10% workforce
• Novellus warning of lower earmings due to weakness in the memory chip market

The S&P Information Technology Index, that represent the general tech stock level, seems to be building a bottom. The following chart of this index represents the 6 year daily chart, and it shows that the bear market correction could be almost over and the uptrend support that began in 2002 will continue:

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CreditSights estimated that CitiGroup (C) will report the biggest write-downs for the first quarter; from $15 billion to $17 billion.

This sale of their debt will problably generate an early financial rally, and possibly financial stocks will open higher. But it shouldn´t last.

Investors are cautelous on the possibility that the first quarter results of “corporate America” will be worse than expected.

Let´s see other headlines:

• Motorola names former AT&T chief, David Dorman, as their chairman. 
• US pending home sales fall in February. After raising in January, home sales fell 1,9%, more tan the 1,1% projected by analysts.
• At 9:30 am, Fed´s Chairman Ben Bernanke will speak on financial literacy in Washington. This will certainly affect which direction the stock market will go.
• American Airlines expects more cancellations. This is happening because almost 300 planes do not comply with some regulation rules about wiring.
• According to Goldman Sachs, financials stock prices reflect exaggerated fears, and adviced its clients to make selective buys in the sector. Morgan Stanley, Lehman Brothers and UBS are among these companies, Goldman Sachs said.

Although investors seem to have discounted a possible recession, and bad news have not such negative impact, the increasing amount of bailouts suggest that the economy is indeed in problems.

Job data is weaker every week, and GDP is at zero. But my biggest concern is what Bernanke said last week: “recession is possible”. Why would he say that if he wasn´t anticipating one?

The phrase “don´t fight the Fed” can be ambiguous right now…although they evidently want the economy to escape from recession, the clues they have been giving to us suggest that we are still on a bullish market with not very good prospects, and that the past rally was just a sentimental move of investors that must be corrected.

Certainly, I see a lot of red indicators today. Lets see today´s headlines:

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