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Pre-Market Primer: Mixed Financial Earnings; Jobless Claims Drop


Citigroup missed, but BofA beat.

Stocks are likely to open higher after some positive economic data and corporate earnings.

Initial claims for unemployment insurance last week fell to 335,000 from the previous week's of 371,000. Economists expected a more moderate drop to 368,000. A separate report showed that builders broke ground on homes at a seasonally adjusted annualized rate of 954,000 in December 2012, beating estimates.

Later this morning, The Philadelphia Fed's business conditions index for this month will likely show a 2.1 point drop to 6.

Stock futures pointed to a higher open this morning. Dow (INDEXDJX:.DJI) futures were up 0.11% at 13,452. Futures contracts on the S&P 500 (INDEXSP:.INX) rose 0.21% to 1,468.70 and Nasdaq (INDEXNASDAQ:.IXIC) futures gained 0.28% to 2,733.00. European and Asian stocks were mixed overnight.

Bank of America (NYSE:BAC), the second-largest lender in the country, beat earnings estimates by a penny with $0.03 per share. Excluding one-time charges such as $900 million for litigation, earnings were $0.12. Adjusted revenue of $19.61 billion trailed expectations, however.

Citigroup's (NYSE:C) earnings and revenue came in far below estimates at $0.69 per share and $18.66 billion respectively. Revenues were down 4% on the quarter but increased 8% from the year earlier. Shares fell 3.65% in pre-market trading.

EBay (NASDAQ:EBAY) beat the Street with earnings of $0.70 per share on $3.99 billion in sales. PayPal sales rose 24%. The company is benefiting greatly from the shift to mobile computing. The company plans to push its mobile strategy further with its acquisition of, a company that makes credit card-scanning technology. CEO Paul Donahoe said that users will soon be able to register by taking a photo of your drivers' license and credit card with a smartphone.

Silver Lake, a private equity firm, is said to be closer to shoring up leverage to take Dell (NASDAQ:DELL) private. The buyout, according to Bloomberg, will be worth about $15 billion. Dell has an enterprise value of $19.7 billion. Dell hopes that going private will let it manage the company without the pressures from Wall Street.

Shares of CBS Corp (NYSE:CBS) jumped 9.65% after the company announced that it will turn its outdoor advertising business into a real estate investment trust and that it is seeking a buyer for the European and Asian advertising business.

Intel (NASDAQ:INTC) will report earnings after the bell today. The chipmaker has struggled to grow sales lately as it is largely absent from the fast-growing mobile phone and tablet markets and the PC market, according to Gartner, shrank by 4.9% over the quarter. Analysts expect Intel to report earnings of $0.45 per share on $13.52 billion in sales, down from $0.64 and $13.89 billion in the year earlier. CEO Paul Otellini has already announced his departure, and he might name his successor during today's earnings call.

Twitter: @vincent_trivett
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