Wall Street is combing through another big pile of corporate earnings. All three major averages (^GSPC, ^DJI, ^IXIC) are lower across the board after a disappointing outlook from Apple and as crude prices (CL=F) fall for the third straight day.
The Apple half full
Apple (AAPL) shares are lower after the company’s fiscal fourth-quarter earnings failed to impress investors even though Apple beat profit forecasts and essentially matched revenue projections. Investors seem to be focused instead on Apple’s profit margin forecast for the current quarter, which fell short of expectations. Are investors missing the point?
Stocks to watch
Chipotle (CMG) shares fell this morning. The Mexican restaurant chain delivered third-quarter earnings and revenue that missed analysts’ estimates as same-store sales fell 22% from year ago. This comes as Chipotle struggles to woo back customers following a series of food safety scares last year.
Boeing (BA) reported earnings and revenue that handily topped analysts’ estimates. Profit jumped nearly 34% from a year ago. The company also lifted its outlook for the year as deliveries increased.
Coca-Cola (KO) posted a slight beat on earnings and revenue for last quarter as an increase in prices and smaller packaging in the US helped offset a stronger dollar and weakness overseas.
Twitter (TWTR) shares got a nice bounce ahead of the open following a report by micro blogging site Betaville that Disney (DIS) is once again interested in buying the struggling social media network. Twitter’s stock has been volatile as speculation swirls of whether or not it will be bought.
Pressure on Tesla
Investors are waiting for quarterly results from Tesla (TSLA) after the bell today. This will be Tesla’s last profit report before shareholders vote next month on the controversial merger of Tesla with Solar City. CEO Elon Musk wants to deliver a quarter where Tesla is cash-flow positive and maybe even makes money. Musk has told employees that said this quarter is “critical.” Will Tesla prove it has the right stuff?
GM turns to Watson
General Motors (GM) is turning to IBM’s (IBM) Watson to make its cars smarter. And to sell you stuff. GM today will unveil a new version of its OnStar system to offer services beyond navigation and entertainment. The new system is designed to learn from users’ behavior and offer them goods and services from partners like Exxon Mobil. Who does this benefit most?
