Intel Earnings Fall Short, Investors to Vote on Dell’s Bid: Morning Buzzers
U.S. stock futures rose this morning, after jobless claims reached a two-month low. Federal Reserve Chairman Ben Bernanke will continue with his testimony on the state of stimulus today. Yesterday, comments from Bernanke boosted stocks, after he said the pace of economic recovery will determine when the Fed will end stimulus.
Futures at 8:30 a.m.: DJIA: +0.01% S&P 500: +0.21% NASDAQ: +0.03%
Here’s your cheat sheet to the stories buzzing this morning:
Dell Inc.’s (NASDAQ:DELL) shareholders meeting on founder Michael Dell’s $24.4 billion offer for the company is scheduled for today. But according to USA Today, the meeting could be postponed by any last-minute offers or efforts by Dell’s critics. Dell has been battling with Carl Icahn for ownership of the struggling computer company. Some Dell analysts cited by USA Today said they believe shareholders might delay the meeting, to see if Dell will sweeten his bid.
International Business Machines (NYSE:IBM) reported earnings that topped analyst expectations. The company made a profit of $3.91 for the second quarter, which beat the mean analyst estimate of $3.78 compiled by Bloomberg. The company increased its profit by working to shift focus to the fast-growing areas of cloud computing and data analysis.
Intel Corp.’s (NASDAQ:INTC) second quarter earnings fell short of analyst expectations. The world’s largest chip-maker is blaming a slump in PC sales and economic weakness in China as reasons for the disappointing results. Intel’s second quarter revenue was $12.8 billion, down from the mean analyst estimate of $12.896 billion compiled by Reuters. The company also cut its earnings forecast for the current quarter.
Google Inc. (NASDAQ:GOOG) and Microsoft Corp. (NASDAQ:MSFT) are both expected to post increased earnings after the bell today. Microsoft is expected to report a 15 percent increase in revenue, and 12 percent increase in earnings per share, despite a worldwide slowdown in PC sales, according to analysts cited by CNBC. Google’s revenue is expected to grow 50 percent, bolstered by the company’s presence in mobile search.
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