Stocks to watch: General Motors, Morgan Stanley
The automaker reports a record profit, but it's still weaker than expected. Moody's threat to cut credit ratings looms over Morgan Stanley and other banks.
Updated at 9:25 a.m
General Motors (GM) reported its biggest quarterly profit ever Thursday. Still, the automaker missed fourth-quarter earnings estimates by a penny as it lost money in Europe and South America. Excluding certain items, the company earned 40 cents a share. Analysts surveyed by Thomson Reuters had estimated 41 cents. Revenue rose 3% to $38 billion, in line with estimates. GM said 2012 will bring "continued pricing improvement with cost inflation well contained, while product mix and pension expense are expected to be unfavorable." Revenue is expected to grow.
The credit ratings of Morgan Stanley (MS), UBS (UBS) and Credit Suisse (CS) could be cut three notches by Moody's Investors Service because of the risks associated with the eurozone debt crisis. Moody's is reviewing the long-term ratings of 17 global and 114 European financial institutions. The ratings agency said the guidance is "indicative only." Goldman Sachs (GS), JPMorgan Chase (JPM) and Citigroup (C) are among the banks that could see their ratings cut two notches, Moody's said.
NetApp (NTAP), the data storage software company, posted in-line results for its fiscal third quarter and provided a fourth-quarter outlook that sits within analysts' ranges. NetApp reported non-GAAP profit of $216 million, or 58 cents a share, for quarter ended in January on revenue of $1.57 billion, matching analysts' estimates. For its fiscal fourth quarter ending in April, NetApp expects non-GAAP earnings of 60 cents to 65 cents a share on revenue ranging from $1.65 billion to $1.73 billion. Analysts forecast profit of 63 cents a share on revenue of $1.68 billion.
Nvidia (NVDA), the graphics chip-maker, forecast revenue of $900 million to $930 million for its fiscal first quarter ending in April. Analysts expected sales of $944.6 million.
DirecTV (DTV) said fourth-quarter profit rose 16% to $718 million, or $1.02 a share. Revenue rose 13% to $7.46 billion. DirecTV added a net 590,000 subscribers in December in Latin America. But U.S. subscriber additions fell to 125,000 from the 289,000 added last year. Analysts expected fourth-quarter earnings of 92 cents a share on revenue of $7.41 billion.
J.M. Smucker (SJM) posted adjusted third-quarter profit of $1.22 a share, down from $1.27 a year earlier. Revenue rose 12% to $1.47 billion. Analysts expected profit of $1.41 a share on revenue of $1.54 billion.
Nordstrom (JWN) is expected to post earnings of $1.09 a share in the fourth quarter on sales of $3.17 billion.
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] A solid November employment report translated into a solid day of gains for the major averages. While there was some talk that the encouraging job growth raised the odds of the Fed announcing a tapering at its December meeting, the message of the markets today was either that it didn't believe there would be a tapering this month or that it doesn't fear a tapering this month.
It was just one day, yet there was ample meaning wrapped up in the connection that the 10-yr ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
LATEST MARKET DISPATCHES
- No more Dispatches; here's where to find market news
The Market Dispatches column has been discontinued. Here's where to find the latest stock and business news on MSN Money, and the latest from market writer Charley Blaine.
- Dow falls 59 as late-day gloom kills a rally
- Stocks held back by fiscal-cliff worries
- Stocks suffer worst weekly loss in 5 months
- Dow off 121 as post-election swoon continues
- Dow slumps 313 after Obama's re-election
- Dow jumps 133 as Americans head to the polls
The Fed may start tapering in just a few months. Here are a few of the likely winners and losers.