Stocks down after Google, IBM disappoint

Written By limadu on Kamis, 17 April 2014 | 22.16

NEW YORK (CNNMoney)

The Dow is down around 40 points, while S&P 500, and Nasdaq are also slightly negative.

There was hope that the rebound rally this week would continue. The Dow soared 162 points on Wednesday, while the S&P 500 and Nasdaq both rose by more than 1%.

Restaurant and food companies left investors with a good taste.

Shares of Pepsico (PEP, Fortune 500) are climbing. Better performance in the company's snack businesses outweighed mediocre results in soda sales.

Chipotle (CMG) shares are also gaining. The restaurant chain missed earnings estimates but revenue came in higher than Wall Street had predicted. Even the winter weather didn't keep people from getting their burrito and guacamole fix.

Related: Chipotle's burrito boom continues

Market belllwether General Electric (GE, Fortune 500) is trading higher after reporting better than expected first quarter earnings, even though earnings and revenue still showed a decline.

Goldman Sachs (GVP) is surging. The bilded bank firm strongly outperformed Wall Street expectations. Investment banking revenue was the highest since 2007.

Fellow financial powerhouse Morgan Stanley (MVNR) is also having a good day after reporting that first quarter earnings surged 63% and revenues grew 10%.

Technology companies, however, seem to be losing some of their "byte".

IBM (IBM, Fortune 500) stock was down after posting disappointing earnings and revenue. It was the eighth straight quarter of revenue declines for Big Blue.

Shares of Google (GOOGL) are also sinking after earnings that missed expectations. Google's ad volume was up 26%, but that still underwhelmed Wall Street.

Related: CNNMoney's Tech30

China's Weibo begins trading today. Some have called Weibo the Twitter of China, but the company had to cut its offering from 20 million shares to just under 17 million shares, raising well less than expected.

Weibo is being watched closely as a warm-up for China's Alibaba which is expected to start trading in the U.S. in the coming months. Alibaba is China's version of a hybrid Amazon.com/eBay.

Related: Weibo IPO: Not looking good for Chinese stocks debuting in the U.S.

In Europe, rising tensions in eastern Ukraine were adding to the unsettled tone. European, U.S., Russian and Ukrainian officials are meeting in Geneva today to try to find ways to resolve the crisis.

President Obama has warned of new sanctions against Russia if the talks fail. European markets are slightly higher.

China GDP data published Wednesday showed the world's second largest economy is slowing, but not as dramatically as some had feared. Asian markets ended mixed. To top of page

First Published: April 17, 2014: 10:06 AM ET


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