Apple shares dipped overnight after the company revealed lower
than expected holiday iPhone sales and a disappointing revenue
Most were expecting Apple to post incredible figures after the
company signed a long awaited deal with China Mobile, the world's
largest wireless carrier. However, Apple's expectations for its
March quarter, when the results of the China Mobile deal should be
evident, were lackluster.
Moving forward, most are hoping Apple has a new revolutionary
product in the works for 2014 to help boost the company's value.
Rumors have centered around a smart watch or TV device, but nothing
has been announced.
In other news around the markets:
On Tuesday, the Reserve Bank of India raised its main interest rate
by 25 basis points on the expectation of continued high consumer
price index inflation. The bank said if its projections are
correct, it does not anticipate any further tightening in the near
term. A Wall Street Journal and NBC News poll found that Americans
are becoming increasingly worried about President Barack Obama's
abilities and the nation's future. Obama is set to announce his
2014 agenda on Tuesday night, which is expected to fall in line
with the issues supported by the majority of the public. Turkey's
central bank called an emergency meeting on Tuesday in response to
the nation's crumbling currency. The bank will attempt to avoid a
destabilizing crisis as investors pull their money out of risky
assets. On Monday, Liberty Global made a deal to acquire Ziggo NV
for 6.9 billion euros. The two companies had been in talks since
August and Ziggo said it rejected a takeover offer back in
November, but that the two would continue to negotiate.
Asian markets steadied on Tuesday after a steep fall on Monday.
The Japanese NIKKEI was down 0.17 percent but China's Shanghai
composite was up 0.26 percent and the Shenzhen composite was up
0.21 percent. The South Korean KOSPI rose 0.34 percent and
Indonesia's JSX composite was up 0.44 percent.
European markets were up across the board, the UK's FTSE was up
0.33 percent and the eurozone's STOXX 600 gained 0.70 percent. The
German DAX was up 0.69 percent and France's CAC 50 rose 0.76
Energy futures were higher, Brent futures for March delivery was
up 0.46 percent and WTI futures gained 0.43 percent. Gold lost 0.85
percent and silver was down 0.42 percent. Industrial metals were
mostly lower with tin posting the largest loss, down 0.91
The euro lost some ground against the dollar and fell to $1.3637
and the pound fell 0.23 percent against the dollar. The dollar
gained 0.53 percent against the yen and lost 0.70 percent against
the Australian dollar.
Notable earnings released on Monday included:
Apple Inc. (NASDAQ:
) reported first quarter EPS of $14.50 on revenue of $57.60
billion, compared to last year's EPS of $13.81 on revenue of $54.51
billion. Seagate Technology (NASDAQ:
) reported second quarter EPS of $1.32 on revenue of $3.53 billion,
compared to last year's EPS of $1.38 on revenue of $3.67 billion.
Ashland Inc. (NYSE:
) reported first quarter EPS of $1.42, compared to last year's EPS
of $1.12 on revenue of $1.87 billion.
Stocks moving in the Premarket included:
Carnival Corp (NYSE:
) gained 3.45 in premarket trade after releasing better than
expected earnings on Monday. Cliffs Natural Resources Inc. (NYSE:
) rose 2.06 percent in premarket trade after falling 13.51 percent
over the past week. Ford Motor Co. (NYSE:
) was up 1.59 percent in premarket trade after losing 4.90 percent
over the past five days. Citigroup (NYSE:
) gained 1.21 percent in premarket trade after falling 1.05 percent
on Monday General Electric Co. (NYSE:
) was up 0.80 percent in premarket trade after losing 5.68 percent
over the past week.
Notable earnings releases expected on Tuesday include:
Ford Motor Company (NYSE:
) is expected to report fourth quarter EPS of $0.28 on revenue of
$35.15 billion, compared to last year's EPS of $0.31 on revenue of
$34.50 billion. Comcast Corporation (NASDAQ:
) is expected to report fourth quarter EPS of $0.68 on revenue of
$16.62 billion, compared to last year's EPS of $0.52 on revenue of
$15.94 billion. Danaher Corporation (NYSE:
) is expected to report fourth quarter EPS of $0.95 on revenue of
$5.20 billion, compared to last year's EPS of $0.87 on revenue of
$4.98 billion. AK Steel Holding Corporation (NYSE:
) is expected to report fourth quarter EPS of $0.02 on revenue of
$1.44 billion, compared to last year's loss of $0.30 on revenue of
$1.42 billion. E.I. du Pont de Nemours and Company (NYSE:
) is expected to report fourth quarter EPS of $0.55 on revenue of
$7.78 billion compared to last year's EPS of $0.11 on revenue of
Tuesday's economic calendar will be packed with US data
including, crude stockpiles, consumer confidence, and durable
goods orders. Other notable economic releases include, British GDP,
Italian consumer confidence, and French consumer confidence.
For a recap of Monday's market action, click .
Tune into Benzinga's pre-market info show with Dennis Dick and
(c) 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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