Major indices suffered as investors cope with continuing uncertainty and turbulence. Apple, however, was a bright spot in an otherwise dreary week.
“The Dow and S&P 500 are both headed for four consecutive losing weeks. The Nasdaq Composite has dropped 3% this week, on track for its fifth straight negative week,” write Hannah Miao and Yun Li write of CNBC. “Shares of Apple rose about 3% after the company reported its largest single quarter in terms of revenue ever even amid supply challenges and the lingering effects of the pandemic. Apple beat analyst estimates for sales in every product category except iPads.”
Tesla and Intel Beat Expectations
Tesla exceeded expectations this week, despite facing chip shortages and supply chain challenges. “Tesla reported fourth-quarter results that came in stronger than expected on Wednesday,” write Lora Kolodny and Jordan Novet of CNBC. “Revenue rose 65% year over year in the quarter, while automotive revenue totaled $15.97 billion, up 71%, according to a statement.” Tesla reported earnings of $2.52 per share, beating the $2.36 per share figure predicted by analysts.
Intel also reported earnings, saying that it expected “$18.3 billion in adjusted sales in the first quarter of 2022, beating consensus analyst expectations of $17.62 billion,” writes Kif Leswig of CNBC.
“Intel is still feeling the burn from the chip shortage. It’s struggling to fully capitalize on tremendous pandemic-fueled demand for new PCs, because you can’t make a laptop with Intel chips alone. And yet that didn’t stop Intel from having its best financial year ever,” writes Sean Hollister of The Verge.
Chip Shortages Reaching Critical Levels, Raising Fears of More Manufacturing Slowdowns
The worldwide chip shortage threatens manufacturing operations across multiple sectors of the economy, according to the Commerce Department.
“Some manufacturers that rely on semiconductors are down to less than five days’ worth of inventory, according to a report released Tuesday bythe Commerce Department, in the latest indication of the extent of the computer chip shortage,” writes Clare Duffy of CNN Business. “The report, based on more than 150 responses to a Commerce Department request for information from businesses that produce and use semiconductors, found that the median supply of chips held by manufacturers has dropped from 40 days’ worth in 2019 to less than five days’ worth last year.”
Pentagon Moves Forward with Zero Trust Architecture Prototype
Booze Allen Hamilton will develop a zero trust architecture prototype for the Defense Information Systems Agency, according to a report in c4isrnet. The six-month project aims to create a working prototype that can be scaled across the Department of Defense.
“The Pentagon’s top IT office issued a nearly $7 million contract to develop its zero trust IT architecture, the Department of Defense announced Tuesday,” writes Mark Pomerleau of c4isrnet. “The cyber threat landscape has shifted in recent years, becoming much more dynamic. As a result, traditional defenses have proven to not be up to the test. The federal government has now shifted to what it calls a zero trust model, which assumes networks are already compromised and validates users, devices and data continuously.”
