Bank of America Misses the Mark Amid Market Slump: Morning Buzzers
Stock futures pointed to a lower open on Wednesday.
Futures at 8:55 a.m.: DJIA: -0.62%, S&P 500: -0.76%, NASDAQ: -0.81%.
Here’s what’s buzzing on Wednesday morning:
Yahoo (NASDAQ:YHOO) stock was off as much as 2.2 percent in pre-market trading. The turn-around tech giant posted first-quarter 2013 results after the bell on Tuesday that showed an unattractive (11 percent) decline in display-advertising revenue to $455 million. GAAP revenue declined 7 percent to $1.1 billion, adjusted EBITA of $386 million was flat with the year-ago period, while net earnings increased 26 percent on the year to $420 million.
Bank of America (NYSE:BAC) stock was off as much as 2.7 percent in pre-market trading. The firm reported first-quarter 2013 financial results that fell short of analyst expectations. Net income of $0.20 per diluted share missed estimates for $0.22 per share. Some highlights include a 5 percent increase in deposit balances and a 17 percent increase in commercial loan balances. The firm commented: “Relative to the same period a year ago, the results for the first quarter of 2013 were driven by increased brokerage income, higher investment banking fees, and improved credit quality across all major portfolios, partially offset by lower mortgage banking income and lower net gains on the sales of debt securities”…
Tesco PLC (TSCDY.PK) reported its first decrease in earnings in nearly 20 years on Wednesday. Among other losses, the British grocery retailer wrote down its failed Fresh & Easy chain in the United States for 1.2 billion pounds ($1.84 billion). The chain looks like it was driven into the ground due to competition with major U.S. retailers like Wal-Mart (NYSE:WMT).
AbbVie (ABBV) is reportedly joining the ranks of drugmakers that are laying off sales people as medicines lose patent protection. A person familiar with the matter tells Bloomberg that the layoffs number in the hundreds. The company will reportedly shift its focus to from primary-care medications to specialty medications. Competition from generics has been a central issue for a number of drugmakers lately.
Mattel (NASDAQ:MAT) climbed as much as 3.2 percent in pre-market trading. The toy maker reported that first-quarter worldwide sales were up 7 percent and net sales increased 7 percent to $995.6 million. Earnings increased from $0.02 to $0.11 per share.
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