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Dell led tech sector stocks lower with its rather disappointing earnings report. Dell earnings were down 54% and that sent shockwaves through the tech sector. CNET reports on the issues that are related to Dell’s earnings:

“We saw some weakness in orders in some of the weeks preceding Windows 7… our inventories were in place and people were waiting to see how the launch went,” he said on a conference call with reporters Thursday. “After the (October 22) launch we saw a surge in orders. We believe that affected our October revenue a bit, but we’ll ship that through in the fourth quarter.”

Gladden did try to point out more positive signs for the company during the quarter, noting, “We significantly improved over the 23 percent (quarterly revenue) decline from earlier this year.”

The tech sector, as a result, is bringing down the entire stock market. The Nasdaq, as might be expected, is being pounded the most. The Dow and the S&P 500 are both lower as well, led by the tech sector.

Another issue afflicting the stock market is the fact that investors are concerned about the speed of economic recovery. For some, it isn’t happening as fast as hoped. And part of the reason for the pullback is due to the fact that investors are starting to think that maybe they were a bit precipitate in sending the stock market so much higher recently. For now, investors are turning to safer investments, like bonds and the U.S. dollar — both of which are backed by the world’s most stable taxpayer base.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

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While gold is still higher today, it has slowed considerably on economic concerns and the fact that the U.S. dollar is trying to rally today. MarketWatch reports on the latest close for gold futures:

Gold futures ended Thursday’s trading marginally higher, as traders reacted to a rebounding U.S. dollar and a slew of economic data. Gold for December delivery, the most actively traded contract, rose 70 cents to end at $1,141.90 an ounce. The thinly traded November contract also gained 70 cents to $1,141.40 an ounce. Both contracts have risen more than 9% so far this month.

With the U.S. dollar gaining on economic recovery concerns, it is little surpise that gold prices have slowed. Gold often moves inversely to the greenback’s performance in forex trading. And with the dollar strengthening as investors consider their possible rashness in pushing stocks so high so fast, the desire for gold as a hedge against inflation is declining.

Another consideration is how quickly gold has risen. There are concerns that gold is experiencing a bubble right now, and that it could burst — especially going forward. Instead, some are recommending silver as an investment. Silver hasn’t had the same sort of runaway success as gold has had in recent weeks, and silver is generally more accessible in terms of being able to afford the price per ounce.

In the end, though having precious metals in your portfolio — whether it is physical or through some instrument like an ETF — can be a good way to help diversify.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

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The U.S. stock market is heading lower today, thanks to the latest economic news. While traders mostly shrugged off the latest inflation data from October, they did take the fact that housing starts were dramatically lower to heart. Indeed, this concern has sent the three major U.S. indices lower. However, the move lower is not a complete rout, as the losses are relatively modest. The Dow has yet to lose 45 points. Another concern is that there could be a double-dip recession. This might cause some to reconsider making large moves with their portfolios.

Indeed, one of the reasons that gains and losses yesterday and today have been relatively staid is that volume is way down. MarketWatch reports on trading volume for the U.S. stock market:

On trading floors, professional traders lamented a lack of market participants once again Wednesday. Even during the Dow’s now more-than-two-week run higher, volume has slowed down dramatically, with traders saying many of their larger clients, including hedge funds, have ceased making large portfolio changes lately.

“This is another quiet day in a string of quite a few,” said Stephen Leuer, a floor trader with X-FA Trading in Chicago. “Some shops are making assumptions we will continue this rally through the end of the year and not making many changes. It’s kind of like a game of musical chairs, everyone is still standing around not ready to take a seat — just waiting for someone else to make the first move.”

For most ordinary investors, who use online trading accounts and retirement accounts for the bulk of their investing, this remains largely a waiting game as investors reposition their holdings and look into low-cost index funds and ETFs that have the potential for gains in an earnest economic recovery. And, of course, those engaging in buy and hold investing, as well as dollar cost averaging, will be holding steady.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.