Updated from 8:33 a.m. EDT
(At 4:10 p.m. EDT)
Tech Earnings in the Spotlight
Financial stocks may have been the story of Tuesday's session following remarks from
, but tech companies are now in focus as the trading day is over.
was the earnings highlight after Tuesday's closing bell. The Internet giant reported a profit, excluding items, of 15 cents a share, nearly doubling the Thomson Reuters average estimate. Revenue fell 13% from a year ago to $1.58 billion, Yahoo! said.
After rallying 5.3% during Tuesday's session, Yahoo! shares were gaining nearly 2% in late trading. However, investors will have to keep an eye out for what new CEO Carol Bartz says during the company's conference call later Tuesday.
Several other tech companies were out with earnings reports after Tuesday's session, including
Advanced Micro Devices
. Looking very quickly at their respective reports, it appears that all three topped revenue expectations for the quarter.
Of course, financials were not far outside of the spotlight late Tuesday, thanks to
. The credit-card issuer reported a net loss of 39 cents a share on revenue of $3.7 billion, compared to the Thomson Reuters average estimate that called for a loss of 8 cents a share on $4.17 billion in revenue.
Continuing a recent trend for financial companies, Capital One said it added $124.1 million to allowance for loan losses in anticipation of higher expected charge-offs this year. The company also said it now expects that managed charge-off dollars in 2009 will be higher than the $8.6 billion outlook for 2009 projected in the fourth quarter of 2008. Shares were tumbling 6.6% in the after-hours session after rallying 12.5% Tuesday.
Looking To Wednesday
Wednesday promises to be another busy day on the earnings front. The major quarterly reports due to drop before the start of trading will come from
These marquee reports (and many of the smaller ones) have to be digested quickly as heavyweights like
will deliver their quarterly results after Wednesday's close.
Aside from earnings, investors should keep an eye on
annual shareholder meeting, which is set to convene in Orlando, Florida at 10 a.m. EDT. It's hard to imagine we'll see the same fireworks on display at
, but it still may be worth watching.
(At 7:32 a.m. EDT)
Dow Components Report Earnings
Several of the
Dow Jones Industrial Average's
30 components were out with earnings results before Tuesday's open, and not a single one is appeasing investors. With five components out with earnings ahead of the opening bell Tuesday and one out Monday night, the one common thread is that all six components fell short in terms of revenue.
were losing ground ahead of Tuesday's open, slipping more than 6% in the premarket session. Excluding items, the company
compiled by Thomson Reuters. However, Caterpillar's first-quarter revenue of $8.51 billion was slightly below consensus, and the company issued downside guidance for the full year.
shares were also trading lower after the beverage giant also fell short of revenue targets for the first quarter. Excluding items, Coca-Cola had earnings of 35 cents a share, which matched estimates, but sales of $7.17 billion was below the average forecast of $7.36 billion. The stock was lately down 1.3%.
of 74 cents a share, coming in 3 cents below the Thomson Reuters average estimate. Revenue fell from a year ago and came up short of estimates. Earnings guidance for the full year was in line with expectations, although the range of revenue guidance was below the Thomson Reuters forecast. Merck shares were losing nearly 3% in the premarket session.
beat first-quarter earnings estimates by 2 cents after it reported earnings of 54 cents a share. However, it too
for the quarter. Shares were down about 3% in premarket trading.
reported earnings of 78 cents a share, in line with estimates, although revenue of $12.3 billion was short of the Thomson Reuters average estimate of $12.4 billion. Shares were trading higher, though, after
for full-year 2009 that was above consensus.
It may have reported after Monday's closing bell, but
is playing a role in Tuesday's trading. The company exceeded Wall Street's forecast with earnings of $1.70 a share, although revenue was lighter than expected. The company also reaffirmed its 2009 guidance for earnings of at least $9.20 a share, compared with current forecasts of $9.03 a share. Still, shares were down 2.4% in the premarket session on the revenue miss.
Other Earnings News
shares traded higher by more than 2% in the premarket session. After Monday's close, the chipmaker reported first-quarter earnings of 7 cents a share, excluding items, compared with the Thomson Reuters average estimate for a loss of 3 cents a share. Revenue of $2.09 billion was also better than analysts expected
Ahead of Tuesday's opening bell, there were a ton of earnings releases hitting the wires. Among them,
Delta Air Lines
all exceeded earnings expectations with their reports, although Coach and U.S Bancorp were the only two to beat revenue targets.
Investors will have to key an eye on comments from Treasury Secretary Timothy Geithner, who will testify before the Congressional Oversight Panel for the government's $700 billion financial rescue program at 10 a.m. EDT.
His comments will be highly scrutinized after a government Troubled Asset Relief Program watchdog said the Treasury's public-private investment program was vulnerable to fraud, abuse, conflicts of interest and money laundering. Neil Barofsky, the special inspector general for the TARP, also said the partnership could expose taxpayers to higher losses without corresponding increases in the potential for profit.
"Leaked" Stress Tests
On Monday, an Internet blog posted what it purported to be the leaked results from the government's stress tests of 19 of the major U.S. financial institutions. I'm not going to link to the Web site because the information appears to be false and because it doesn't need any additional traffic.
That may sound harsh, but hear me out. A U.S. Treasury spokesman told
that there's no basis to claims that 16 of the nation's largest banks are insolvent. And Christopher Whalen, managing director of Institutional Risk Analytics, points out that it was very easy to figure out the "leaked" results were incorrect without waiting for an official comment from the government.
"HSBC bank is not part of the test group, leading us to believe that the 'leak' is bogus," Whalen wrote in an email. "No foreign-owned banks are part of the test group. This is the type of error that would be made by a novice or someone unfamiliar with the process."
More Automaker News
shares were gaining ground after reports that the
in aid available through May to help the company restructure outside of bankruptcy.
On the other hand, the White House is reportedly offering
only $500 million in aid through the end of April, and some officials have reportedly said that Chrysler may not be worth saving.