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Pre-Market: BlackBerry Interim CEO John Chen Boosts Confidence Despite Reported $4.4 Billion Loss; US GDP Soars


Jon Chen came across as capable, sending BlackBerry shares up.

US stock futures were higher as third-quarter GDP was revised upward, and BlackBerry (NASDAQ:BBRY) posted a much wider loss than anticipated.

Future contracts on the Dow Jones Industrial Average (INDEXDJX:.DJI) gained 0.11% to 16,133.00 before the opening bell, while S&P 500 (INDEXSP:.INX) futures rose 0.12% to 1,804.20. Nasdaq (INDEXNASDAQ:.IXIC) futures climbed 0.15% to 3,498.00.

America's economy grew 4.1% in the third quarter, according to the Federal Reserve's final revision of the indicator. The preliminary estimate was for a 3.6% rise in GDP.

Shares of BlackBerry were volatile this morning despite a multi-billion dollar loss for the smartphone company. BlackBerry's third-quarter loss widened to $4.4 billion, or $8.37 per share. A year ago, it made a profit of $0.02 per share. Revenue of $1.2 billion was 55% lower than it was a year ago. Analysts had expected a $0.44 per share loss on $1.59 billion in revenue. Despite the poor report, shares moved into the green during the conference call with interim CEO John Chen. Chen said that the company will begin producing handsets in Indonesia, one of its strongest markets, with Foxconn (TPE:2354). Shares of Blackberry were up 3% at 8:30 a.m.

Nike (NYSE:NKE) reported that fiscal second-quarter earnings beat expectations by a penny. Profits rose 40% year-over-year to $0.59 per share. Revenue rose 8% to $6.43 billion, but fell short of Wall Street's expectations. Shares were up 0.18% in pre-market trading as the company signaled positive guidance for the current quarter.

European Union officials say that Google (NASDAQ:GOOG) needs a better proposal to remedy alleged discrimination against rival companies in search results. If the EU pursues a settlement, it could result in big fines against Google.

Shares in China fell for the ninth straight session, the worst stock performance the country has seen in 19 years. Traders are fearing a cash crunch in short-term money markets as the seven-day repurchase rate rose 3.28 percentage points to 7.6%. Rates jumped despite an emergency cash injection from the People's Bank of China.

Twitter: @vincent_trivett
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