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April 17 Premarket Briefing: 10 Things You Should Know

Updated from 6:43 a.m. EDT

Here are 10 things you should know for Thursday, April 17:

1.
-- U.S. stock futures were pointed lower on Thursday following disappointing earnings from some U.S. technology giants.

European stocks drifted lower in early trading. Asian shares ended the session mixed. Japan's Nikkei 225 was unchanged.

2.-- The economic calendar in the U.S. on Thursday includes weekly initial jobless claims at 8:30 a.m. EDT, and the Philadelphia Fed Index for April at 10 a.m. 

3.-- U.S. stocks on Wednesday jumped after better-than-expected Chinese growth while investors digested dovish remarks from Federal Reserve Chairwoman Janet Yellen and an improved Beige Book report. 

The Dow Jones Industrial Average rose 1% to 16,424.85, while the S&P 500 gained 1.05% to close at 1,862.31. The Nasdaq jumped 1.29% to 4,086.23.

4. -- Google (GOOG - Get Report) reported first-quarter earnings that missed Wall Street expectations while paid clicks fell from the first quarter.

The search giant's non-GAAP earnings in the first quarter were $6.27 a share on revenue of $12.19 billion, excluding traffic acquisition costs (TAC). Google site revenue of $10.47 billion rose 21% from a year earlier and accounted for 68% of Google's revenue. Including TAC, Google generated $15.45 billion in revenue for the quarter.

For the first quarter, analystswere expecting Google to earn $6.40 a share on revenue of $15.52 billion, though that number likely includes traffic acquisition costs. 

Google shares fell 2.4% in premarket trading to $543.13.

5. -- Industrial conglomerate General Electric (GE) reported first-quarter earnings of 30 cents a share on revenue of $34.18 billion, down from $34.94 billion a year earlier.

Adjusted to reflect continuing operations and to remove the effect of one-time charges, the company earned 33 cents a share in the quarter; analysts expected 32 cents.

GE said industrial divisions performed well and the economic environment was "positive."

The stock rose 1.4% in premarket trading to $26.48.

6. -- IBM (IBM - Get Report) reported reduced first-quarter net income and a slide in revenue as a result of a one-time work force rebalancing charge and a negative currency impact, as well as the usual hardware drag.

The company reported a 22% decline in operating net income to $2.6 billion, or $2.54 a share, and a 21% drop in GAAP net income to $2.4 billion, or $2.29 a share.

Analysts, on average, were expecting EPS of $2.54.

IBM shares fell 4.1% to $188.42 in premarket trading.

7. -- Goldman Sachs (GS) reported first-quarter earnings of $4.02 a share, handily beating estimates of $3.45 a share.

In premarket trading, the stock rose 1.8% to $159.98.

8. -- Net income at American Express (AXP) climbed in the first quarter, helped by higher spending by its cardholders even as cold winter weather gripped much of the country.

AmEx said its cardholders spent 6%t more in the first three months of the year, driving up revenue for both its U.S. and international card businesses.

AmEx said net income rose 12% to $1.43 billion, or $1.33 a share. Revenue rose 4% to $8.2 billion from $7.88 billion a year earlier.

Analysts were expecting earnings of $1.30 a share on revenue of $8.35 billion. 

9. -- Morgan Stanley (MS) reported first-quarter profit on Thursday of 68 cents a share, excluding items. Wall Street expected earnings of 59 cents a share.

The earnings increase to $1.4 billion from $1.2 billion was helped by the company's trading and merger and acquisitions advisory businesses.

The stock rose 2.9% in premarket trading to $30.75.

10. -- Yahoo!'s (YHOO) recently fired chief operating officer, Henrique de Castro, left the Internet company with a severance package of $58 million even though he lasted just 15 months on the job.

The disclosure in a regulatory filing Wednesday may lead to more second-guessing about Yahoo! Marissa Mayer's decision to hire de Castro as her second-in-command in October 2012.

Mayer dumped de Castro in January after concluding he wasn't executing on her plan for reviving Yahoo!'s lackluster ad growth, The Associated Press reported. De Castro had been in charge of ad sales.

-- Written by Joseph Woelfel

To contact the writer of this article, click here:Joseph Woelfel

To submit a news tip, send an email to:tips@thestreet.com.

Follow @josephwoe58

 

Copyright 2014 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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