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U.S. Stock-Index Futures Are Little Changed as Coach, IBM Slide

Jan. 22 (Bloomberg) -- U.S. stock-index futures were little changed, following yesterday’s gain by equities, as investors assessed earnings from companies including Coach Inc. and International Business Machines Corp.

Coach slumped 6.9 percent in early New York trading after sales in the second quarter of its financial year missed analysts’ estimates. IBM slid 3.6 percent as revenue declined for a seventh consecutive quarter. BlackBerry Ltd. rose as the struggling smartphone maker said it plans to sell most of its Canadian real estate to raise cash for its turnaround plan.

Standard & Poor’s 500 Index futures expiring in March fell less than 0.1 percent to 1,837.5 at 7:36 a.m. in New York. The equity benchmark gained 0.3 percent yesterday as the International Monetary Fund increased its forecast for global economic growth. The gauge rallied 30 percent in 2013 for the best year since 1997. Contracts on the Dow Jones Industrial Average lost 33 points, or 0.2 percent, to 16,322 today.

“The market looks to be running on the spot and not moving ahead, and understandably so, given the good run last year,” said Manish Singh, who helps oversee $2 billion as head of investments at Crossbridge Capital in London. “Company earnings have to come in and surprise us positively to justify a move higher. Growth forecasts for the economy look well anchored and the IMF forecast underlined it yesterday.”

Twenty-five companies in the S&P 500 including Northern Trust Corp., Netflix Inc. and EBay Inc. report earnings today. Of the 70 index members that have posted results so far this season, 69 percent have beaten estimates for profit and 65 percent have exceeded sales projections, according to data compiled by Bloomberg.

Coach, IBM

Coach slid 6.9 percent to $48.90. Revenue for the quarter through Dec. 28 amounted to $1.42 billion, missing the average analyst estimate of $1.48 billion. The maker of luxury accessories posted earnings per share of $1.06, falling short of the $1.11 that analysts had projected.

IBM dropped 3.6 percent to $181.70 as the world’s biggest computer-services provider said revenue declined to $27.7 billion in the three months through December amid plunging demand for servers. Profit dropped at the company’s hardware unit partly because of its x86 server business, according to Chief Financial Officer Martin Schroeter.

Texas Instruments Inc., the largest analog-chip maker, slipped 1.3 percent to $43.28 in German trading after forecasting first-quarter net income of 36 cents to 44 cents a share from sales of $2.83 billion to $3.07 billion. The average analyst estimate had called for earnings of 44 cents and revenue of $2.96 billion, according to data compiled by Bloomberg.

AMD, BlackBerry

Advanced Micro Devices Inc. slumped 10 percent to $3.74 in pre-market trading after the maker of processors for personal computers predicted that revenue will reach $1.29 billion to $1.38 billion in the first quarter. The average analyst projection had called for sales of $1.37 billion, according to a Bloomberg survey.

BlackBerry rose 0.7 percent to $10. The company said in a statement that it will work with CBRE Group Inc. to sell vacant properties as well as occupied space it will then lease back from the new owners.

Nuance Communications Inc. jumped 8.8 percent to $16.20. The provider of voice applications to corporate customers said first-quarter preliminary adjusted earnings per share probably amounted to 23 cents to 24 cents, more than the 20-cent average estimate of analysts. The company predicted profit of 18 cents to 21 cents apiece in November. Nuance will report its final results for the first quarter on Feb. 10.

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