JPMorgan beats estimates. Wells Fargo is light on revenue. Ecolab agrees to buy Champion Technologies.
By Andrea Tse
Futures for the Dow Jones Industrial Average ($INDU) were up by 19 points at 13,284. S&P 500 ($INX) futures were up by 3.50 points at 1,431. Futures for the Nasdaq ($COMPX) were rising by 3.25 points to 2,717.
JPMorgan reported third-quarter results that blew past Wall Street estimates.
The company reported third-quarter earnings of $5.7 billion, or $1.40 a share, beating the consensus estimate of $1.24, among analysts polled by Thomson Reuters. Third-quarter revenue totaled $25.1 billion, beating the consensus estimate of $24.5 billion.
However, during the quarter the firm also saw a significant decline in credit quality, as nonperforming assets grew by 10%.
The Dow ends with its fourth straight loss as an early rally falls apart. Jobless claims hit their lowest level since 2008. Sprint Nextel is talking about a deal with Japan's Softbank. Apple slumps. Oil rises on Middle East worries.
Updated: 11:27 p.m. ET
For a while, it looked like stocks would enjoy a nice rebound after two painful losses.
But the rally gave way as discount retailing and homebuilding stocks gave up recent gains and Apple (AAPL) closed below $630 for the first time since Aug. 10. A U.S. appeals court overturned a decision to ban sales of a new Samsung smartphone. The Dow Jones industrials ($INDU) suffered their fourth straight loss. The Nasdaq Composite Index ($COMPX) fell for the fifth session in a row.
The market opened nicely on a Labor Department report that jobless claims fell to their lowest level in 4 1/2 years. And Wall Street was cheered on news that Sprint Nextel (S) is talking with Japanese telecommunications giant Softbank (SFTBY) about Softbank buying as much as 75% of the U.S. telecom company, The New York Times said. Bloomberg News said a deal might be worth some $13 billion. Sprint shares were up 72 cents to $5.76 after hitting $5.90, a 52-week high.
On Friday, investors will get third-quarter results from JPMorgan Chase (JPM), the nation's largest banking company by assets, and Wells Fargo (WFC), the fourth-largest -- and the nation's biggest mortgage lender. JPMorgan is expected to earn $1.21 a share, up from $1.02 a year ago. Analysts see Wells Fargo earning 87 cents a share, up from 72 cents a year ago.
Jobless claims fall to the lowest level since Feb. 2008. S&P downgrades Spain's debt. Citigroup raises US equities to overweight. Ruby Tuesday reports an in-line profit.
By Andrea Tse
U.S. stock futures were gaining ground Thursday as investors cheered a better-than-expected report on labor market conditions and shrugged off Standard & Poor's two-notch downgrade of Spain's debt.
Moody's, which already has Spain on watch to be downgraded to junk status, will likely go next, according to Stephen Guilfoyle, U.S. economist at Meridian Equity Partners.
"The perception … is that this or these downgrades make it that much easier for Spain to ask for the help they need when their huge debt bill comes due in about 10 days," said Guilfoyle. "By Spain asking for help, the ESM can then purchase Spanish sovereign debt in the primary market, and the ECB can then activate their OMT program to buy said debt in the secondary market. The provided liquidity will take the pressure off of the throat of Spain, at least for now, kicking that proverbial can a much further ways down that road."
Investors are dismayed by weak outlooks from Chevron and Alcoa. Costco and Yum results cheer, and Wal-Mart cites strong back-to-school sales. 3rd-quarter PC sales slump. In a modestly improving economy, the Fed sees new housing activity.
Stocks tumbled again today as worries about weakening global and domestic growth combined to push energy, materials and industrial stocks lower. The pressures offset strong earnings from Yum Brands (YUM) and Costco Wholesale (COST).
The Dow Jones industrials ($INDU) suffered their third loss in a row and second straight loss of 100 points or more. The Standard & Poor's 500 Index ($INX) and the Nasdaq Composite Index ($COMPX) suffered their fourth straight losses.
Alcoa (AA) and Chevron (CVX) were the two worst performers among the 30 Dow stocks. Alcoa warned about weakness in global markets, especially in China. Chevron warned late Tuesday that slumping oil prices and production would cause earnings to be "substantially lower." It blamed Hurricane Isaac for disrupting production at a Mississippi refinery.
The Alcoa and Chevron warnings are part of a continuing theme of warnings centered around slowing global and domestic economic growth. Europe is staggering from the effects of its debt crisis. China is suffering from overbuilt housing and slowing export markets. The global and domestic pressures forced FedEx (FDX) to develop a plan, announced today, to cut expenses by $1.7 billion over the next three years. The savings will come through service adjustments, swapping old planes for new ones and a voluntary buyout plan.
Costco reports a rise in quarterly net income. Chevron cautions that third-quarter earnings may be lower. Alcoa delivers a surprise profit. The markets await the Fed's Beige Book survey.
By Andrea Tse
U.S. stock futures were wavering Wednesday as investors awaited third-quarter corporate announcements and some domestic economic releases.
"The market, in our opinion, is prepared to a large extent for the overall bad earnings comparisons that are about to be reported," said Scott Wren, senior equity strategist at Wells Fargo Advisors.
Futures for the Dow Jones Industrial Average ($INDU) were down by 25 points at 13,387. S&P 500 ($INX) futures were down by 0.70 points at 1,435. Futures for the Nasdaq ($COMPX) were falling by 0.25 points to 2,733.
The Dow falls 110 points. The Nasdaq slumps for a 3rd day. Earnings boost Yum Brands shares after hours; Alcoa drifts. Apple weighs on techs again. A downgrade hits Intel; Cummins trims its revenue guidance. Oil rises on more Middle East tensions.
Technology shares pulled stocks lower again today in a market already worried about global growth and the third-quarter earnings season.
Apple (AAPL) was one of the biggest causes of the market's decline, and shares ended lower after briefly rebounding into the black. IBM (IBM), Amazon.com (AMZN), Intel (INTC), MSN Money publisher Microsoft (MSFT), Google (GOOG) and Oracle (ORCL) were lower as well.
After the close, shares of Yum Brands (YUM), best known for its KFC and Taco Bell businesses, were up $2.61, or 4%, to $68.65 as earnings were better than expected. But shares of Alcoa (AA) have given up their after-hours gains and were off a penny from the regular close of $9.13.
The market may be pressured Wednesday after engine-maker Cummins (CMI) cut its full-year revenue guidance and profit guidance. It expects to reduce its work force by 1,000 to 1,500. The company blamed the global slowdown. North American heavy-truck and international power generation business is especially weak. So is China. Shares were off $3.83 to $87.01 after hours.
The IMF downgrades its global outlook. Spain's bailout plans remain uncertain. Small-business optimism declines. Alcoa reports after the close.
By Andrea Tse
Stock futures were wavering Tuesday ahead of the start of the new earnings season, and amid a downgrade of global growth estimates from the International Monetary Fund.
Meanwhile Spain's bailout plans remained uncertain.
Futures for the Dow Jones Industrial Average ($INDU) were up by 5 points at 13,506. S&P 500 ($INX) futures were up by 0.90 points at 1,451. Futures for the Nasdaq ($COMPX) were falling by 2.50 points to 2,775.
Apple drops on worries about iPhone supplies and worker unrest in China. Netflix soars on an upgrade. Facebook falls on a 'sell' call. Alcoa rises ahead of Tuesday's earnings results. Gold and crude oil move lower.
Tech stocks, especially Apple (AAPL), were lower today and were the chief reason U.S. stocks moved down.
Apple finished down $14.42 to $638.17. Also moving lower were Google (GOOG), Oracle (ORCL), Qualcomm (QCOM), Microsoft (MSFT, publisher of MSN Money) and Facebook (FB).
There were other issues, of course, starting with worries about the third-quarter earnings season, which unofficially begins with Alcoa's (AA) report after Tuesday's close.
In addition, there was continued fretting about global economic growth. And the World Bank cut its economic growth forecast for China, citing property-market troubles and subdued global demand for exports from the world's second-largest economy.
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[BRIEFING.COM] The major averages have continued their advance that was sparked by Jon Hilsenrath's report indicating the Fed will keep its forward guidance little changed in tomorrow's policy statement.
The energy sector (+1.8%) remains in the lead, while utilities (+1.3%) and health care (+1.3%) follow a bit behind. However, only those three sectors hold gains larger than 1.0%. Furthermore, the energy space is the lone outperformer among cyclical groups, while the other five ... More
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