IBM Takes a Hit After 13th Consecutive Quarter Drop, easyJet Rises on Strong Annual Profit Forecast
July 22, 2015 7:16 am
Asian equity markets dropped on Wednesday after weak tech giant earnings assisted a sell-off in U.S. equities The Nikkei finished 1.2% lower at 20593.67, retreating from its six day rally after nearly reaching a 4 week closing high of 20868.03. U.S. stocks fell on Tuesday as earnings results from IBM and United Technologies disappointed market expectations . The Dow fell 1 percent to 17919.29, with IBM and United Tech contributing around 118 points to the 181-point drop. The 1 % fall marked the biggest percentage fall in around two weeks. IBM’s shares fell 5.9 percent to $163.07, a day after news that the company’s revenues dropped for the 13th consecutive quarter and fell short of analyst expectations. In addition United Technologies dropped 7 percent to $102.71 and was the worst performer on the Dow after cutting its full-year profit outlook for the third time this year. The S&P 500 fell 9.07 points, or 0.43 percent, to 2,119.21 and the Nasdaq Composite dropped 10.74 points, or 0.21 percent, to 5,208.12. Volumes were light in the US trading session, with 6.15 billion shares traded on U.S. exchanges, below the 6.54 average
Meanwhile, the Dollar eased 0.2 % against the Yen to 123.67 falling further away from Tuesday’s high of 124.48. Comments from Bank of Japan Governor Kuroda had helped put pressure on the Dollar versus the Yen, as he said he expected inflation to accelerate considerably in the coming months due to a tight labour market and brushed off the idea of any need for more quantitative easing. His statements are being seen as suggesting that the BoJ is in no rush to add further monetary easing any time soon.
Over in the UK equity market ARM Holdings posted a 32 percent rise in second-quarter profit, reflecting a jump in royalties from devices like Apple’s iPhone 6, and said it would meet market expectations for the year as long as consumer spending holds up ARMs shares are now trading hands at 999p, down 3.82% on the day so far. In the meantime, Britain’s low-cost airline easyJet predicted an annual profit growth of between 7 percent and 14 percent, putting it on track at the mid-point to meet analyst forecasts for a 10 percent rise. Shares are trading at 17.40, up by 3.92% so far.
Data is pretty light today; at 9:30 we have the minutes from the previous Bank of England monetary policy committee meeting, along with its inflation report hearings. In the US we have MBA mortgage application and existing home sales figures, along with EIA oil stocks change.
Asian equity markets dropped on Wednesday after weak tech giant earnings assisted a sell-off in U.S. equities The Nikkei finished 1.2% lower at 20593.67, retreating from its six day rally after nearly reaching a 4 week closing high of 20868.03. U.S. stocks fell on Tuesday as earnings results from IBM and United Technologies disappointed market expectations . The Dow fell 1 percent to 17919.29, with IBM and United Tech contributing around 118 points to the 181-point drop. The 1 % fall marked the biggest percentage fall in around two weeks. IBM’s shares fell 5.9 percent to $163.07, a day after news that the company’s revenues dropped for the 13th consecutive quarter and fell short of analyst expectations. In addition United Technologies dropped 7 percent to $102.71 and was the worst performer on the Dow after cutting its full-year profit outlook for the third time this year. The S&P 500 fell 9.07 points, or 0.43 percent, to 2,119.21 and the Nasdaq Composite dropped 10.74 points, or 0.21 percent, to 5,208.12. Volumes were light in the US trading session, with 6.15 billion shares traded on U.S. exchanges, below the 6.54 average
Meanwhile, the Dollar eased 0.2 % against the Yen to 123.67 falling further away from Tuesday’s high of 124.48. Comments from Bank of Japan Governor Kuroda had helped put pressure on the Dollar versus the Yen, as he said he expected inflation to accelerate considerably in the coming months due to a tight labour market and brushed off the idea of any need for more quantitative easing. His statements are being seen as suggesting that the BoJ is in no rush to add further monetary easing any time soon.
Over in the UK equity market ARM Holdings posted a 32 percent rise in second-quarter profit, reflecting a jump in royalties from devices like Apple’s iPhone 6, and said it would meet market expectations for the year as long as consumer spending holds up ARMs shares are now trading hands at 999p, down 3.82% on the day so far. In the meantime, Britain’s low-cost airline easyJet predicted an annual profit growth of between 7 percent and 14 percent, putting it on track at the mid-point to meet analyst forecasts for a 10 percent rise. Shares are trading at 17.40, up by 3.92% so far.
Data is pretty light today; at 9:30 we have the minutes from the previous Bank of England monetary policy committee meeting, along with its inflation report hearings. In the US we have MBA mortgage application and existing home sales figures, along with EIA oil stocks change.
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