Futures fall after Apple, Amazon results

As earnings season continues, two of the largest companies miss analyst expectations.

By Benzinga Oct 26, 2012 7:49AM

Zurbar age fotostockU.S. equity futures fell in early Friday trading after large companies, including Apple (AAPL) and Amazon (AMZN) reported earnings Thursday that missed analyst estimates.

 

Apple reported sales that beat expectations but earnings missed, and Amazon reported its first quarterly loss in years. S&P 500 futures fell below 1,400 on the recent string of weak earnings.

 

Also making headlines, the Japanese government announced a new round of stimulus measures totaling 422.6 billion yen, or $5.3 billion, as the country looks to boost growth from its decades-long stagnation. Economists are looking for the Bank of Japan to act next week in tandem with the fiscal authorities.

Top news

  • Spain's unemployment rate rose to 25.0% in the third quarter, up from 24.6% in the third quarter and slightly below economist expectations of 25.1%.
  • The IMF has finally admitted that Greece cannot meet its targets as set under the current bailout agreement, and it appears that the country will get extra two years to pay back the loans.
  • European Central Bank Governor Jorg Asmussen spoke overnight, saying that the new OMT program is not inflationary and that the aid request does not automatically trigger bond purchases, rather it is just one condition. Also, on China, he said that some local governments are effectively bankrupt and that the rich-poor divide continues to grow, not shrink.
  • Standard & Poor's downgraded BNP Paribas to A+ from AA- and lowered its outlook on Credit Agricole and Societe Generale, the other two French mega-banks.
  • S&P 500 futures fell 10.3 points to 1,397.90.
  • The EUR/USD was slightly higher at 1.2939.
  • Spanish 10-year government bond yields rose to 5.672%.
  • Italian 10-year government bond yields rose to 4.907%.
  • Gold fell 0.47% to $1,705.00 per ounce.

 

See more of Benzinga's market news here.

 

Commodities

Commodities were weak overnight on global growth fears. WTI Crude futures fell 0.72% to $85.43 per barrel and Brent Crude futures slipped 0.44% to $108.10 per barrel. Copper futures also fell on global weakness with futures falling 0.44% to $353.50 per pound. Gold was lower and silver futures fell 0.93% to $31.78 per ounce.

 

Currencies

Currency markets did not echo the strong risk-off tone seen in other markets overnight, as the dollar was effectively flat in overnight trading and moves remained tepid. The EUR/USD was slightly higher and the dollar fell against the yen, sending the pair back below 80. Overall, the Dollar Index was flat at 80.04 with the dollar gaining against its Canadian counterpart and the Swedish krona and falling against the euro and the yen. The Aussie dollar was slightly weak against a basket of currencies, the only risk-off sign in currency markets.

 

Premarket movers

  • Amazon shares fell 1.4% pre-marekt following weak earnings.
  • Boston Scientific (BSX) shares rose 0.78% in premarket trading after positive comments from Seeking Alpha.
  • Yum Brands (YUM) fell 1.7% premarket as investors fear that one of its strongest units, its Asian arm, is set to see growth rates continue to slow.
  • Freeport-McMoRan (FCX) fell 1.33% premarket as analysts warned on its earnings release.

 

Earnings

  • Coventry Health (CVH) is expected to report third quarter earnings per share of $0.73 vs. $0.82 a year ago.
  • Lear Corp (LEA) is expected to report third quarter earnings per share of $1.19 vs. $1.08.
  • Merck (MRK) is expected to report third quarter earnings per share of $0.93 vs. $0.94 a year ago.
  • Weyerhaeuser (WY) is expected to report third quarter earnings per share of $0.18 vs. $0.12 a year ago.

 

Economics

On the economic calendar Friday, the initial estimate of third quarter GDP for the U.S. is due out as well as consumer sentiment data.

 

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7Comments
Oct 26, 2012 9:27AM
avatar
Oh, and after  almost a quarter century of massive government stimulus, Japan is beginning their  version of QE XXIV?  LOL...  talk about being unclear on the concept and trying the same thing over and over and expecting different results...

America may follow Japan's plan to reinforce Failure, by re-electing '57 States'.    The results will be the same...  
Oct 26, 2012 9:23AM
avatar
hmmm...

Jim Rodgers now predicting really bad economic times ahead.  Very troubling.  Everyone should read his take on Obamanomics.  He has rarely been wrong on spotting trends.

I see the GDP numbers are being cooked as well as the unemployment numbers.   

Obamanomics will bankrupt this country.  Prepare!
Oct 26, 2012 12:08PM
avatar
Trying to tax yourself to prosperity is like standing in a bucket and trying to lift yourself up by the handle. - Winston Churchill

That leaves the other pillars of Obamanomics....   Print, Borrow and Spend...  Can you really Print your way to prosperity?   How about borrow and spend your way out of debt and into prosperity?


Oct 26, 2012 1:03PM
avatar
MG I know you have your perception blinders on, but Mega Corps run the show, no matter who gets sent to prison for 4 year (out on 2 for 'good' time).  Allowing businessmen in to the White House will finish off the plan- remove all public options and cede control to oligarchies and plutocracies.  This should not be what you wish, and its something you would already understand, had you been born into wealth rather than being the small business guy you are.

But hey, you go on pulling their cart for them.  Cant wait to see how Mitt rewards your persistence.
Probably with more regulations on small  business and a freer hand for the large ones.

Oct 26, 2012 12:26PM
avatar
NO such thing as Obamanomics, man.
TO be exact, we should call it Bernankonomics.

Oct 26, 2012 10:55AM
avatar
OK, so the "right" answer is a return to the Bushonomics that got us to this mess?
NO, there is NO  "RIGHT"  Answer here.   Why drive a car that only has a brake
pedal and cant handle Left turns?

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