Facebook’s Anniversary and Dell Disappoints: Morning Buzzers
Stock futures advanced on Friday morning. Economists are expecting the results of a consumer sentiment survey later in the morning to show improvement over April. The Conference Board’s leading indicator’s index is expected to increase from -0.1 percent in March to 0.3 percent for April.
Futures at 8:45 a.m.: DJIA: +0.31%, S&P 500: +0.33%, NASDAQ: +0.33%.
Here’s what’s buzzing on Friday morning:
Dell (NASDAQ:DELL) was off fractionally in pre-market trading after the beleaguered PC-maker reported mixed first-quarter results. Revenue decreased 2.4 percent on the year to $14.1 billion, beating the average estimate of $13.5 billion. However, adjusted earnings fell 51.2 percent on the year to $0.21 per share, missing the average estimate of $0.35 per share. The company is fighting against a tide of declining PC sales while being torn between competing buyout proposals of various scales.
J.C. Penney (NYSE:JCP) stock was off as much as 3.7 percent in pre-market trading after posting first-quarter results. The struggling retailer reported that revenue decreased 16.4 percent on the year to $2.64 billion, missing the average estimate of $2.7 billion. Adjusted earnings fell to -$1.31 per share, missing the average estimate of -$0.86 per share. However, shares are still up 27 percent on the month, having reacted favorably to the ousting of of former turnaround CEO Ron Johnson.
Disney (NYSE:DIS) stock received some negative attention on Friday morning after analysts at Atlantic Equities downgraded shares from Overweight to Neutral citing valuation. Shares have climbed just over 30 percent this year to date and at about $66 each, are nearing the mean analyst estimate of $71.
Applied Materials (NASDAQ:AMAT) was off about 1.4 percent in pre-market trading after reporting financial results. Revenue declined 22.4 percent on the year to $2.0 billion, beating the average estimate of $1.9 billion. Adjusted earnings decreased 40.7 percent on the year to $0.16 per share, beating the average estimate of $0.13 per share.
Facebook (NASDAQ:FB) held its IPO a year ago, and the stock received a fractional anniversary day boost in pre-market trading. The stock is down 31.7 percent on the year, and is currently trading about 21 percent below the mean analyst price target.
General Motors (NYSE:GM) stock climbed about 1.6 percent in pre-market trading after receiving an upgrade from Underperform to Buy from analysts at CLSA.
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