After major upsets in tech earnings, stock futures are heading
down this morning.
) surprised investors yesterday with one of the biggest earnings
disappointments in its history as it took a write-down for the
Surface. Microsoft earned $0.66 per share on $19.9 billion in
revenue. Analysts had expected profit of $0.75 on $20.7 billion.
The miss excludes one-time items including a $900 million
write-down for the Surface tablet, which has met a cold reception
from consumers and businesses. Recently, the company slashed the
price of the Surface by nearly a third. Weak demand for PCs also
hurt sales of Windows. Microsoft, a
(INDEXDJX:.DJI) component, fell 7.4% from its closing price
) also came up sour. Second-quarter profit rose to $9.54 per share,
up from $8.42 per share a year ago. Revenue rose to $11.1 billion
from $9.61 billion. Wall Street had expected earnings of $10.80 and
$11.37 in sales.
) reported that earnings rose 0.9% to $0.36 per share, just one
cent over estimates. Revenue, however fell 3.5% to $35.12 billion.
GE Capital was a weak spot in the conglomerate's business, where
profit fell 9.4%. Shares rose 1.6% in pre-market trading.
) reported that profit rose to $1.02 billion or $1.28 per share
from $902 million in the same quarter last year, meeting
expectations. The company could come under fire however, as a
faulty Honeywell emergency beacon is being investigated as a
possible cause for the fire aboard a
) Dreamliner in London last week,
After reaching all-time highs yesterday, US stock futures are
slightly lower before the opening bell.
Dow futures are down 0.08% to 15,469 while futures contracts on the
(INDEXSP:.INX) inched up 0.02% to 1,681.00 and
(INDEXNASDAQ:.IXIC) futures fell 0.05% to 3,046.00. The economic
calendar is quiet today.
European and Asian markets were also lower overnight. The People's
Bank of China said that it will remove some restrictions on lending
rates for Chinese banks today.
The City of Detroit filed the largest municipal bankruptcy America
has ever seen. Detroit has $20 billion in liabilities that it
simply cannot meet with its current resources.
The Organization for Economic Cooperation and Development, the rich
industrialized countries club, is developing a blueprint for going
after global companies that exploit multiple countries' laws to
legally avoid their tax obligations.
(SBUX) have recently been subject to dressing-downs by lawmakers in
Europe and the United States. The OECD proposal calls for making it
harder to book profits overseas in tax havens such as Ireland.
Moody's upgraded its outlook for US credit to stable from negative
and reaffirmed its AAA rating, saying that the federal government
is on track to fulfill the original 2011 debt ceiling agreements.