May 24, 2012

H-P Cuts Deep to Save Itself

FBN’s Stuart Varney sounds off on the health of H-P.

The Big Story

Call it the “Apple Effect”, rippling through tech, beating up yesterday’s heroes.

 

Hewlett Packard struggles with PCs. Lays off 27,000 Dell, struggles with PCs. The stock tanks.

 

All the big players in the PC market take a hit.

 

The Mac and the iPhone are sweeping the market. The old guys are in disarray. That’s the tech story.

 

So what? Silicon Valley is still where the money is and that’s where politicians are headed. Call it a cash crusade. The President is raising money there right now. He will be followed by Republicans Boehner, Romney, and Ryan.

 

The Money is leaving the oil patch, but why? It is a global slowdown and there’s more evidence of that today. China: more weakness. Europe more slowdown. Not good news for us.

Varney Blog: Company Memos