BlackBerry Reports Big Losses, Nike Beats Estimates: Morning Buzzers
U.S. stock futures have remained stable this morning as investors wait for data on American consumer sentiment and business activity. The S&P 500 is headed towards its best first half of the year since 1998 after better-than-expected economic reports and assurances that the Federal Reserve will not end stimulus in the next couple months led to a three-day rally this week.
Futures at 8:30 a.m.: DJIA: +0.01% S&P 500: +0.04% NASDAQ: -0.01%
Here’s your cheat sheet to today’s top stocks stories:
Nike Inc.’s (NYSE:NKE) fourth-quarter profits beat analyst expectations, growing 22 percent to $668 million. An increased demand for running and basketball equipment in North America drove the growth. In China, however, the company did not do as well, as consumers unhappy with Nike apparel forced the company to give discounts. The news comes on the heels of a management overhaul of the world’s largest sporting goods company announced last week.
BlackBerry (NASDAQ:BBRY) shares have plummeted 17 percent after the smartphone maker reported a net loss of $84 million for the quarter ending June 1, a loss even bigger than analysts had been expecting. BlackBerry reported a loss of 13 cents per share, more than doubling analyst estimates that the company would lose 6 cents per share. The company is forecasting more losses for the current quarter, but continues to hope that the new BB10 model will help it win back some of the market share it’s lost.
Sprint Nextel Corp.’s (NYSE:S) acquisition of the remaining shares of Clearwire (NASDAQ:CLWR) that it doesn’t already own is expected to be voted on by the Federal Communications Commission soon. It has been reported that the FCC won’t force Sprint to sell any spectrum as a part of the purchase. The FCC could vote on that deal, as well as Sprint’s takeover by SoftBank (SFTBY.PK) as soon as today.
Bank of America (NYSE:BAC) is refusing to negotiate with America International Group Inc. (NYSE:AIG) on a $8.5 billion settlement over claims made by investors in mortgage securities from lender Countrywide Financial Corp., which Bank of America purchased in 2008. AIG doesn’t believe the settlement is enough to cover its losses, but Bank of America has decided to take its chances that a New York judge will approve the settlement.
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