Coke Disappoints, Rio Tinto Output Impresses: Morning Buzzers
U.S. stock futures have remained flat on Tuesday morning. Goldman Sachs (NYSE:GS) produced a strong earnings report, while Coca-Cola Co. (NYSE:KO) disappointed analysts. Investors are cautious for now, waiting on data from consumer prices, industrial production, and housing that are due out later today.
Futures at 8:30 a.m.: DJIA: +0.01%, S&P 500: +0.01%, NASDAQ: +0.09%
Here’s your cheat sheet to the stories buzzing this morning:
Yahoo Inc. (NASDAQ:YHOO) shares have soared since CEO Marissa Mayer took the position a year ago, but her performance has not yet taken an effect on Yahoo’s earnings. Analysts are expecting Yahoo’s revenue to only have increased 0.1 percent in the second quarter, with earnings per share only rising 3 cents. Yahoo will release its earnings results after the bell Tuesday.
Rio Tinto (NYSE:RIO) has achieved a record output of iron ore for the first half of the year. The mining company exceeded expectations for iron ore output, and it says it’s on track to expand into a remote region of Australia that could yield 290 million metric tons per year. Rio Tinto makes the majority of its profits from mining iron ore, and the volatile price of the metal could hurt the company’s bottom line even if they manage to mine a lot of it.
Baidu (NASDAQ:BIDU), China’s leading search engine, is looking to create a mobile ecosystem similar to Google’s (NASDAQ:GOOG). The company recently purchased mobile app distributor 91 Wireless for $1.9 billion. Baidu currently operates the majority of its searches through personal computers and is looking to make a shift into mobile to continue its incredible growth in the Chinese market.
Barrick Gold (NYSE:ABX) is being ordered by a Chilean court to address multiple environmental issues before the company can continue with operations and construction at its Pascua-Lama mine. Chilean natives have accused the company of contaminating their water supply, and a judge ruled that the company must keep all of its environmental promises, including repairing damage to two rivers and monitoring the conditions of some nearby glaciers, before moving forward with the project.
Coca-Cola Co. (NYSE:KO) has blamed a drop in its second-quarter profits on slow sales in Europe. Net income fell from $2.79 billion last year to $2.68 billion. The company has tried raising prices to cope, but economic troubles in Europe and Latin America had a negative affect on Coke’s bottom line.
Follow Jacqueline on Twitter @Jacqui_WSCS
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