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Pre-Market Primer: Jobless Claims Spike, Nokia Shares Jump on Lumia Sales

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Shares are higher with earnings beats in the tech sector.

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MINYANVILLE ORIGINAL Futures are pointing toward a positive open after a few earnings beats and despite a seasonal spike in unemployment claims in the US.

Initial jobless claims rose by 34,000 last week to 386,000. The previous week's drop to 350,000 was attributed to a seasonal adjustment issue. Auto plants usually shut down to retool for the new year's car models at this time of year, but most plants stayed open. The less volatile four-week moving average fell by 2,000 to 375,000. At European debt auctions today, Spain's borrowing costs rose and French yields fell.

European and Asian markets both posted gains today and US index futures are pointing toward a higher open. Dow (^DJI) futures rose 0.32% to 12,901, S&P 500 (SPY) futures gained 0.36% to 1,372.20, and Nasdaq (^IXIC) futures are up 0.61% to 2,636.00.

A huge decline in trading revenue drove Morgan Stanley (MS) earnings below analyst estimates. The investment bank booked a profit of $591 million, or $0.29 per share in the second quarter, down from $1.19 billion or $0.38 per share last year. Over the course of the quarter, Morgan Stanley suffered a two-notch downgrade from Moody's, but a steeper cut was expected. Shares of the bank fell 5% in pre-market trading.

Nokia (NOK) shares rose more than 12% despite the company reporting a huge loss. The Finnish handset maker's loss widened to 1.41 billion euros from 368 billion euros in the previous quarter. Revenue also fell to 7.54 billion euros. The silver lining that Nokia investors are siezing on is the 4 million shipments of Lumia smartphones. Earlier this week, AT&T (T) cut the price of the phone in half to just $50, which might accelerate sales. Nokia's long-term debt has been reduced to junk and its market capitalization has fallen by 95 billion euros since the debut of the Apple (AAPL) iPhone in 2007.

IBM (IBM) delivered quarterly results of $3.9 billion in profits on $25.8 billion in revenue. Earnings per share rose 14% to $3.51, partly reflecting the roughly $17 billion in stock repurchases that the cash-rich company has made in the past year.

eBay (EBAY) shares are up more than 7% since the company reported better-than-expected earnings yesterday afternoon.

Twitter: @vincent_trivett
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
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