Ford is Downgraded, Coach Crashes, and Apple on Deck: Morning Buzzers
Futures are mixed on Wednesday morning. Strong tech earnings pulled the NASDAQ higher, but economic malaise is abundant heading into a House vote on the debt ceiling, scheduled for later today.
At 8:40 a.m.: DJIA: -0.06%, S&P 500: -0.13%, NASDAQ: +0.07%.
Here’s what’s buzzing in the pre-market:
Google (NASDAQ:GOOG) climbed 4.8 percent in after-hours trading on Tuesday after reporting a fourth-quarter earnings beat. The company reported a 36.26 percent year-over-year increase in revenue to $14.42 billion, and a 6.88 percent year-over-year increase in net income to $2.89 billion, or $10.56 per share.
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IBM (NYSE:IBM) is also enjoying a pre-market pop of nearly 4 percent after its own strong fourth-quarter results. The company’s early shift away from hardware and toward services is being credited for its ongoing strength despite turbulent industry trends. The company reported earnings of $5.13 per share on revenue of $29.3 billion for the quarter.
Ford (NYSE:F) was greeted on Wednesday morning with a downgrade from “Buy” to “Hold” by analysts at Deutsche Bank. The firm also changed its price target from $15 to $13, which compares to its Tuesday closing price of $14.17.
Coach (NYSE:COH) is apparently falling out of fashion, according to its weak fourth-quarter earnings. North American sales were a notable weak spot and modest holiday sales growth contributed to an earnings miss at $1.23 per share, 5 cents shy of estimates. Shares were off as much as 16.5 percent in the pre-market on fears that the brand is fading.
McDonald’s (NYSE:MCD) edged up slightly after reporting strong fourth-quarter and full-year results. For the year, global comparable sales were up 3.1 percent worldwide, with revenues up 2 percent and diluted EPS up 2 percent.
Apple (NASDAQ:AAPL) will be reporting its highly-anticipated fourth-quarter earnings on Wednesday after the bell. Shares have climbed 2 percent in the past five trading days, and the stock is back above $500 heading toward the report.
The Republican-led House will vote on a short-term increase to the debt ceiling today. The White House said it is likely to sign a measure if it reaches President Barack Obama’s desk, but the bill has to pass a Democratically-controlled Senate first.