Forex

IBM, impressed investors by easily beating quarterly profit expectations and raising 2008 forecasts when it reported along with other big tech companies on Thursday.

In contrast, Microsoft missed estimates amid concern about its online business and the economy, while Google Inc also disappointed, after a weaker-than-expected 35 percent quarterly profit increase.

Darren Bagwell, Director of equity research at Thrivent Asset Management, which manages $73 billion, reckons IBM’s results point to strong performances for companies like EMC Corp, the world’s biggest maker of corporate storage gear. EMC releases its results on July 23.

Smaller companies

Companies the size of IBM could fare better in a weakening economy than smaller rivals, analysts said. Demand for hardware appears to be trickling down to smaller manufacturers such as Sun Microsystems Inc, whose shares have been battered, losing 48 percent this year.

Microsoft's online division posted an eighth consecutive quarter of decline, reporting an operating loss of $488 million.

Industry analysts feel that bodes poorly for Microsoft's rival and acquisition target, Yahoo Inc which reports results on Tuesday.