Stocks are poised to fall for the third straight day after
jobless claims rose and disappointing manufacturing data from China
was released. Internet stocks such as
) also rose after reporting strong earnings.
After a mixed trading day, stock futures are mostly lower ahead of
the starting bell.
(INDEXDJX:.DJI) futures were down 0.35% at 16,260.
(INDEXSP:.INX) futures fell 0.32% to 1,832.70, and futures on the
(INDEXNASDAQ:.IXIC) declined 0.08% to 3,617.75.
Jobless claims in the US ticked up by 1,000 to 326,000. Economists
had expected claims to fall to 330,000.
In earnings news, Netflix reported a bumper fourth quarter. Net
profit rose to $48 million from $8 million in the same period a
year ago. Earnings per share came in at $0.79, far surpassing
estimates. The number of Netflix subscribers in the US also rose by
2.3 million to 31.7 million, making it more popular than
). The video streaming service predicts $48 million in profit for
the current quarter as well, as 2.25 million new subscribers are
expected to sign up. On the earnings call, CEO Reed Hastings
discussed the possibility of charging users for sharing their
account passwords. Shares surged 17% on the news.
Ebay shares were up 1.9% after its earnings report. The auction
site's earnings per share came in at $0.81, beating consensus.
Revenue grew by 13.5% to $4.5 billion, but fell short of analyst
projections. Activist investor Carl Icahn, who has an 0.8% stake in
Ebay, has proposed that it spin off PayPal. Ebay disagreed. The
company also announced that it will buy back $5 billion of its own
) reported slow growth in the last quarter. Earnings per share of
$1.40 beat expectations by a penny, but revenue of $7.09 billion
fell short. Global comparable store sales rose just 0.1%, while US
sales fell 1.4%. Analysts had anticipated that US traffic had
fallen just 0.5%. Europe, a key market for the fast food company,
fared better, as sales rose by 1%.
) announced that it will sell its low-end server business to
(OTCMKTS:LNVGY). Lenovo will pay $2.3 billion in cash and stock.
The Chinese company is expected to take on as many as 7,500 IBM
employees in the deal.
This month, China's manufacturing sector declined for the first
time in half a year. The HSBC flash PMI for January fell to 49.6
from 50.5 in December. (Readings under 50 indicate a contraction.)
Later today, we will get more insight into the health of housing
and manufacturing in America. Markit's January US manufacturing
PMI, due for release later this morning, is expected to rise to 55
from 54.4. Existing home sales in December are likely to have kept
a steady annualized pace of 4.9 million. The Federal Housing
Finance Agency's home price index is expected to show another month
of gains in November, rising 0.4%.