Earnings Beat Expectations and Geithner Cleans Out His Office: Morning Buzzers
The markets are comfortably in green territory on Friday morning. After-hours earnings on Thursday were overall healthy, but most importantly didn’t come with a crash like Apple’s (NASDAQ:AAPL), which dragged on the markets yesterday.
At 10:25 a.m.: DJIA: +0.30%, S&P: +0.37%, NASDAQ: +0.58%.
Proctor & Gamble (NYSE:PG) enjoyed a boost from its second-quarter earnings report. Shares climbed over 3.5 percent after P&G reported core EPS growth of 12 percent to $1.22, and increased its forecast for top- and bottom-line growth for fiscal 2013. EPS guidance is now in a range between $3.97 and $4.07.
Starbucks (NASDAQ:SBUX) climbed 4 percent after reporting record first-quarter revenue and profit after the bell on Thursday. Net revenues increased 11 percent to $3.8 billion, while EPS increased 14 percent to $0.57 on the back of a 16.6 percent operating margin.
Microsoft (NASDAQ:MSFT) was up about 1 percent after its second-quarter earnings release. Revenue growth of 3 percent to $21 billion was weighed against earnings contraction of 3 percent to $0.76 per share, moving the stock price nowhere, fast. CEO Steve Ballmer indicated that while Windows 8 might not be rolling out quickly, it’s at least rolling out.
Halliburton (NYSE:HAL) climbed over 4 percent after beating expectations with it fourth-quarter earnings report. Income from continuing operations fell $0.63 per share, two cents below the quarter last year. Total revenue for the period ticked up to $7.3 billion.
Morgan Stanley’s (NYSE:MS) CEO James Gorman is reportedly taking a pay cut for the second year in a row. The firm’s relatively strong performance last year masks an ROE of just 5 percent, about half of what it should be, and about half of the ROE at Goldman Sachs (NYSE:GS), whose CEO Lloyd Blankfein could be getting a raise.
Already one of the most talked about stocks in the market, speculation surrounding Apple is rampant after its 12 percent post-earnings drop on Thursday. Long-time bulls are backing off and slashing their price targets as investors and the market adjusts to the loss… (Read more.)
Secretary of the Treasury Timothy Geithner will leave office today and will be replaced on a temporary basis by Neal Wolin. President Barack Obama has nominated Jack Lew for the position, who is expected to be confirmed by Senate despite some opposition. Many critics wanted to see someone with more private-sector experience take the office. Meanwhile…
The Federal Reserve’s balance sheet grows to $3 trillion on the back of its massive, on-going asset-purchase program. More and more economists and even members of the Federal Open Market Committee have expressed their concern over the Fed’s growing balance sheet. Unwinding its massive position grows riskier every month as the positive effect of its spending diminishes.
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