Spotlight Stocks: Amazon, Dow Chemical, Ford, Nokia
Thursday's top stories and stocks with potential to move.
Stocks to watch for Thursday, July 24, 2008:
- Amazon.com (AMZN) reported 2Q net profit of $158 million, or 37 cents a share, more than double the $78 million, or 19 cents a share it reported a year ago. Analysts were expecting 26 cents a share. Revenue rose 41% to $4.06 billion, above analyst expectations of $3.95 billion. The report is an indication that consumers are searching the online marketplace for ways to save money.
- Dow Chemical (DOW) posted 2Q net income of $762 million, or 81 cents a share, down 27% from $1.04 billion, or $1.07 a share a year ago. Revenue is up 23 percent to $16.38 billion, up from $13.27 billion. Analysts had been expecting earnings of 85 cents per share on revs of $14.9 billion. The decline in earnings, according to the company, was due to rising costs of energy and raw materials.
- Ford (F) reported a 2Q loss of $8.7 billion, or $3.88 a share, down sharply from a net profit of $750 million, or 31 cents a share a year ago. The company cited a reduction in the value of its assets and said the loss included $8 billion in write-offs. Ford plans to introduce six European small car models in the US by the end of 2012 to counter rising fuel prices.
- National City (NCC) posted a 2Q loss of $1.76 billion, or $2.45 a share, down from a profit of $346.6 million, or 60 cents a share a year ago. The company cited higher reserves for mortgage and real estate loans and a $1.08 billion write-down of goodwill for prior acquisitions, reported Reuters. The company also set aside $1.59 billion for loan losses and net charge-offs totaled $740 million.
- Nokia (NOK) and Qualcomm (QCOM) agreed to settle along running legal dispute over the licensing of patents. A new 15-year licensing deal was reached which will give Nokia rights to a wide portfolio of Qualcomm's patents. Nokia will pay Qualcomm an upfront sum and ongoing royalties, but the companies did not elaborate on the terms, reported the Associated Press. Shares of QCOM rose 18.7% in after hours.
- Asian trading closed with the Hang Seng -0.20%, Nikkei +2.18%, Sensex -1.11%, Taiwan +0.80% and Shanghai +2.55%.
- Glancing across the pond, we see the CAC -1.18%, DAX -1.09%, FTSE -0.75%, ATX -2.07%, Swiss Market -0.09% and Stockholm -1.71%.
- In commodities, crude oil is trading higher +0.84 to 125.28 and gold is also up +4.1 to 926.9 this morning.
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