Stocks headed south before Wednesday's opening bell as International Business Machines Corp.
(NYSE:IBM) earnings came up short of expectations.
After a mixed trading day, stock futures are mostly lower ahead of the starting bell. Dow
(INDEXDJX:.DJI) futures were down 0.19% at 16,324. S&P 500
(INDEXSP:.INX) futures fell 0.05% to 1,837.50 and futures on the Nasdaq Composite
(INDEXNASDAQ:.IXIC) rose 0.04% to 3,611.00.
IBM, a Dow component, saw net profit fall 6% to $6.19 billion in the last quarter of 2013. Revenue also fell 5.5% to $27.7 billion, which disappointed analysts. Adjusted for one-time items, earnings per share rose to $6.13, beating estimates by $0.13. As companies moved to cloud computing over on-site machines, IBM is cutting costs. The company's recent performance was so disappointing that CEO Virginia Rometty has decided to forego executive bonuses. Shares were down 3.6% in early trading.
(NASDAQ:BBRY) is set to extend yesterday's rally. Yesterday, the Defense Department said that of the 80,000 mobile handsets that it plans to buy this month, 98% will be BlackBerrys. Shares rose 9.36% on the news, the most in five years. Pre-market trading lifted BlackBerry another 3% after the smartphone company said that it will sell off most of its Canadian real estate to shore up cash.
Shares of Advanced Micro Devices, Inc.
(NYSE:AMD), a chipmaker that competes with Intel
(NASDAQ:INTC), fell 8.15% in pre-market trading after the company delivered soft guidance for this year. Yesterday, the company reported that it swung to a net profit of $89 million, or $0.12 per share, up from a $0.63-per-share loss a year earlier. Excluding one-time items, adjusted EPS was $0.06, beating Wall Street's consensus estimate by a penny. For the present quarter, however, AMD forecasts a 16% fall in revenue.
(NYSE:COH) shares fell 6.2% after the company missed sales and earnings estimates. The luxury purse company made $1.06 per share in the December 2013 quarter on $1.42 billion in revenue. Analysts had projected $1.11 per share in profit on $1.48 billion.
At the World Economic Forum meeting in Davos, Switzerland, Yahoo
(NASDAQ:YHOO) CEO Marissa Mayer said that her company expects more traffic from mobile and tablet devices than traditional desktop and laptop PCs.
Today there are no major US economic indicators on the calendar. Overseas, the Nikkei
(INDEXNIKKEI:NI225) ended the day flat after the Bank of Japan confirmed that it will stay the course with its aggressive monetary stimulus.
No positions in stocks mentioned.
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