Market Minute: Microsoft Resurfaces Its Tablet; Smartphone Wars Wage On
All of the major averages rose last week, even though the gains were trimmed by Friday's selloff. For the week, the Dow Jones industrial average (^DJI) added half of one percent, while the Standard & Poor's 500 index (^GPSC) and the Nasdaq composite index (^IXIC) both gained more than 1 percent.
The big change to the 30 components of the Dow industrials takes effect today. Nike (NKE), Goldman Sachs (GS) and Visa (V) get added in; Alcoa (AA), Hewlett-Packard (HPQ) and Bank of America (BAC) drop out of the blue chip index.
Microsoft (MSFT) is set to try again to crack the tablet market. It's expected to unveil the Surface 2, despite the underwhelming performance of the original models. It controls just 4 percent of the global market for tablets.
We're keeping an eye on BlackBerry (BBRY) again, after it tumbled late Friday. The company's effort to revive its smartphone franchise is apparently failing. It warned that it will write-off the value of nearly $1 billion worth of inventory of its new touchscreen phones, as sales plunged.
On the other hand, AT&T (T) says it expects record smartphone sales in the current quarter. And Apple (AAPL) is expected to report that its two new smartphone models sold out during their first weekend of availability, even though supplies were said to be limited.
Lockheed Martin (LMT) has won a 4 billion contract to supply equipment to the Pentagon and to the United Arab Emirates. The award is for a missile defense system designed to intercept ballistic missiles. Lockheed says several other U.S. allies have also expressed interest in the system.
And Orbital Sciences (ORB) was forced to delay Sunday's planned rendezvous of its unmanned cargo capsule with the space station due to a software problem. Orbital has spent about $500 million to become NASA second space delivery service. It now expects to complete the mission Tuesday.
-Produced by Drew Trachtenberg.