Lehman Sues Intel and GM Beats Expectations: Morning Buzzers
A better-than-expected job cuts report brightened Mr. Market’s mood on Thursday morning, although final manufacturing PMI data out of Europe suggested that the region’s recovery has not yet bottomed out. Many observers are expecting the European Central Bank to cut its benchmark interest rate from 0.75 to 0.50 after meetings held today… (Read more.)
Futures at 8:40 a.m.: DJIA: +0.61%, S&P 500: +0.63%, NASDAQ: +0.74%.
Here’s what’s buzzing on Thursday morning:
Facebook (NASDAQ:FB) climbed as much as 1.7 percent in pre-market trading. The world’s largest social network released first-quarter results after the bell on Wednesday that elicited mixed reactions from investors, but showed overall growth and stability in the company’s core advertising business. Revenue of $1.45 billion edged out the average analyst estimates of $1.44 billion, while non-GAAP earnings of $0.12 per share missed estimates by $0.01. Mobile advertising revenue climbed from 23 percent of total ad revenue in the fourth quarter to 30 percent in the first quarter.
General Motors (NYSE:GM) stock climbed as much as 3.7 percent in pre-market trading after posting strong first quarter results. Revenue declined 2.27 percent on the year to $36.9 billion, but beat the average estimate of $36.6 billion. Earnings fell 27.96 percent on the year to $0.67 per share, beating the mean estimate of $0.54 per share.
Intel (NASDAQ:INTC) is being sued by Lehman Brothers, the investment bank that holds the record for the largest bankruptcy in the U.S. ($639 billion in assets when it filed in 2008). Lehman is in the process of paying back about $65 billion to creditors under a liquidation plan, and alleges that Intel wrongfully seized $1 billion in collateral in 2008, just two weeks after Lehman filed for bankruptcy, as part of a swap agreement gone awry.
Visa (NYSE:V) climbed as much as 2.7 percent in pre-market trading after reporting strong results after the bell on Wednesday. Revenue rose 14.74 percent on the year to $2.96 billion, beating the average estimate of $2.85 billion. Adjusted earnings increased 20 percent to $1.92 per share, beating the average estimate of $1.81 per share.