Weak GDP Outweighs Strong Earnings as Futures Fall: Morning Buzzers
The U.S. equity markets are off to a bad start on Wednesday morning. Futures are lower across the board despite strong earnings and a positive employment report because of an unexpectedly bad turn for the nation’s gross domestic product.
At 8:45 a.m.: DJIA: -0.09%, S&P 500: -0.17%, NASDAQ: -0.10%.
The ADP National Employment Report shows that 192,000 non-farm private sector jobs were added in January, above most estimates. This is the sixth consecutive month that the ADP report has shown growth in private employment.
The Bureau of Economic Analysis reported in its preliminary findings that fourth-quarter GDP shrank 0.1 percent, below expectations for about 1 percent growth.
Boeing (NYSE:BA) released fourth-quarter and full-year earnings before the bell that had the stock up as much as 1.5 percent in the pre-market. Revenues for the quarter climbed 14 percent year over year to $22.3 billion, and increased 19 percent for the full year to $81.7 billion. Earnings per share for the quarter fell 30 percent year over year to $1.28, and decreased 4 percent for the year to $5.11. These results came in ahead of most estimates. As expected, costs related to the on-going 787 Dreamliner investigation haven’t materialized yet.
Amazon (NASDAQ:AMZN) is set to open today’s trading session at least 8 percent higher as a result of its fourth-quarter earnings report. Sales for the period increased 22 percent to $21.27 billion, while net income decreased 45 percent to $0.21 per diluted share. The good news comes in the form of operating income, which climbed 56 percent to $405 million in the fourth quarter… (Read more.)
Hess Corp. (NYSE:HES) will add another day to a growing string of consecutive gains. Shares climbed as much as 2 percent in pre-market trading following the company’s report of estimated fourth-quarter results. Net income of $566 million, or $1.66 per share, is a substantial improvement over a net loss of $131 million, or $0.39 per share, in the year-ago period. Hess has been on a tear after announcing that it will exit refining operations and pursue the sale of its Northeast terminal network.
Phillips 66 (NYSE:PSX) saw some pre-market love after reporting its fourth-quarter results. Net income fell year over year from $3.17 to $1.11 per share, but the year-ago period is artificially inflated because of gains from asset sales. The good news out of the report comes with improved refining margins and $1 billion in debt reduction.
Samsung (SSNLF.PK) wins a battle in its patent war against Apple (NASDAQ:AAPL). A U.S. federal court has ruled that the South Korean company did not willfully infringe on Apple’s patents, meaning that a $1.05 billion fine will not be tripled. According to Reuters, District Court Judge Lucy Koh said the court could not enhance the damages “given that Apple has not clearly shown how it has in fact been undercompensated for the losses it has suffered due to Samsung’s dilution of its trade dress,” or the look and feel of its products.
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