U.S. stock futures fell this morning, weighed down by disappointing earnings results from BASF SE (BASFY.PK), the world’s largest chemical-maker, and Orange SA (NYSE:ORAN), France’s largest phone company. Amazon (NASDAQ:AMZN) and Starbucks (NASDAQ:SBUX) are among the companies due to report earnings today.
Futures at 8:30 a.m.: DJIA: -0.49% S&P 500: -0.45% NASDAQ: +0.07%
Here’s your cheat sheet to the stories buzzing this morning:
Facebook (NASDAQ:FB) shares have skyrocketed 17 percent in pre-market trading. The social media site proved analysts wrong with strong profits from mobile ads. Facebook’s ad revenue from mobile was close to nothing a year ago, but in the second quarter, mobile ads made up 41 percent of the site’s total ad revenue of $1.6 billion. Chief Executive Officer Mark Zuckerberg predicted, “Soon we’ll have more revenue on mobile than desktop.”
Visa (NYSE:V) also beat analyst estimates, as people spent more using the company’s cards in the quarter. The company has raised its expectations for full-year revenue and earnings. Visa showed strong growth in the U.S., its biggest market, with customers in the U.S. spending $683 billion using Visa cards in the quarter. That growth helped stem fears about the European Commission’s plans to start limiting fees on card payments.
Amazon (NASDAQ:AMZN) will report earnings today, and the company’s Prime customers will be in focus as the biggest Amazon spenders. Analysts are expecting revenue to grow 23 percent, and earnings per share to be 5 cents, up from 1 cent a year ago. The company has been taking losses and spending more so that it can make a bigger profit later. Earnings per share for the online retailer could reach $5.95 by 2015, according to estimates.
Starbucks (NASDAQ:SBUX) will report earnings today as the company works on developing a new yogurt brand with French yogurt-maker Danone. Earnings per share are expected to grow 24 percent, with revenue of $3.71 billion. Strong sales in Asia and the U.S. are expected to offset slow growth in Europe. The company’s recent investments in food and tea will not have an impact on earnings quite yet.
GlaxoSmithKline (NYSE:GSK) has settled a suit in the U.S. over the company’s marketing practices for its diabetes drug Avandia. The company agreed to pay $229 million to eight states in the settlement. The drug has been linked to heart problems, and has been banned in Europe and heavily restricted in the U.S. Glaxo is also currently embroiled in a bribery scandal related to the company’s operations in China.
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