Tag: news

Apple's blowout quarter propels Nasdaq to big gain

Posted on by The INO.com Team

(AP:NEW YORK) The Nasdaq composite index shot 2 percent higher Wednesday, powered by a surge in Apple. The iPhone maker's stock climbed more than $50 after the company once again blew past Wall Street's profit forecasts.

The technology-focused Nasdaq was headed for one of its best days this year.

Apple, by far the biggest component of the index, climbed 9 percent after reporting that its earnings doubled from January through March. The company sold 35 million iPhones, twice as many as in the same quarter a year ago.

The surge made back about half of what Apple lost in the two weeks before its earnings announcement late Tuesday. One reason for the slump was an analyst's suggestion that Apple could not keep up the momentum in iPhone sales.

Stock in Apple, the most valuable public company in the world, hit $644 in intraday trading on April 10. It slid as low as $555 on Tuesday. In late morning trading Wednesday, it was up $50 at $611.

The gain helped power the Nasdaq up 56 points to 3,017. Apple makes up 12 percent of the Nasdaq, by far the biggest component. Continue reading "Apple's blowout quarter propels Nasdaq to big gain" →

US stock futures buoyed by strong earnings data

Posted on by The INO.com Team

(AP:NEW YORK) Solid earnings reports lifted U.S. stock market futures Wednesday, after boosting stocks around the world.

Dow Jones industrial average futures are up 0.29 percent at 12,996. Standard & Poor's 500 futures are gaining 0.63 percent to 1,378.80 and Nasdaq 100 futures are up 2.02 percent at 2,685.75.

Nasdaq is getting a big boost from Apple Inc., whose second quarter results topped Wall Street expectations as iPhone sales soared. Apple shares gained more than 10 percent in premarket trading, setting the stock up to resume trading above $600. Several analysts raised their price targets on the stock, with $800 becoming common.

Also turning in strong earnings reports. Boeing Co. exceeded analyst estimates on the strength of commercial airplane sales. Caterpillar posted a 29 percent jump in first-quarter profit as U.S. construction firms replaced old gear and global mining companies purchased equipment. Harley-Davidson Inc. reported a 44 percent rise in profit on a 20 percent jump in sales of motorcycles and related products. Continue reading "US stock futures buoyed by strong earnings data" →

Why investors aren't impressed with profits

Posted on by The INO.com Team

By BERNARD CONDON and PAUL WISEMAN
AP Business Writers

(AP:NEW YORK) When it comes to happy surprises on Wall Street, it's hard to get better than this.

U.S. companies made more money in the first three months this year than almost anyone expected. As earnings reports roll in, they're beating the estimates of stock analysts at a rate not seen in more than a decade.

Yet stocks have languished. The Standard & Poor's 500 index has fallen about 2 percent in April. So why aren't investors impressed?

For starters, earnings season has just begun. The real test is the next two weeks, when more than 300 companies in the S&P 500 report. Apple, the most valuable company in the world, reports Tuesday.

Topping estimates is no great feat. Publicly traded companies do it almost every quarter. They tell analysts to expect a number the companies know will be low. Then they can enjoy a "pop" in their stock price when _ surprise! _ they clear the hurdle.

And this quarter, it's not much of a hurdle. Just a month ago, companies got analysts to expect first-quarter earnings to grow so little you'd need an electron microscope to spot the rise _ just 0.5 percent. Continue reading "Why investors aren't impressed with profits" →

JPMorgan misses

Posted on by The INO.com Team

(AP:NEW YORK) JPMorgan Chase says its income fell 23 percent in the fourth quarter of 2011 after the bank set aside a large sum for litigation reserves and its investment banking income declined.

The largest bank in the nation said Friday it earned $3.7 billion, or 90 cents per share. The results fell short of the 93 cents per share estimated by analysts surveyed by FactSet.

The New York bank set aside $528 million for additional litigation charges related to poorly-written mortgages, while an accounting charge led to a $567 million loss. However, as more credit card customers paid on time, the bank was able to take out $730 million from its loan reserves set aside for credit card defaults.

JPMorgan's stock fell 2.3 percent to $36.01 in pre-market trading.







	


	





	

		
World markets mixed after Fed's historic rate cut
		

			Posted on  by The INO.com Team		

			


	

		
World markets mixed after Fed's historic rate cut


By LOUISE WATT Associated Press Writer


(AP:LONDON) World stock markets were mixed Wednesday after the U.S. Federal Reserve slashed its key interest rate to historic lows and as worries lingered about the world's largest economy and a weakening dollar.


By afternoon in Europe, Britain's FTSE 100 was up 0.19 percent to 4,317.41, while Germany's DAX slipped 0.67 percent to 4,698.31. France's CAC-40 dropped 0.33 percent to 3,240.95, with shares in BNP Paribas plunging around 16 percent after the bank revealed steep losses in investment banking.


U.S. stocks were expected to be lower after rallying on the Fed rate cut Tuesday. Dow Jones industrial average futures were down 1.28 percent to 8,777.00 and the broader Standard & Poor's 500 index futures were down 1.44 percent to 899.70.


Read the whole news story