IMF comments drag market down reducing forcast on euro-zone.
"European Central Bank President Mario Draghi on Tuesday said the euro
area economy faces more risks to growth and is expected recover only
gradually."
"The risks to this outlook are on the downside, mainly related to the tensions in several euro area financial markets."
"Eurozone headline inflation is expected to fall to nearly 1.5 percent
during 2013 and the risks from wages and profits are on the downside,
the IMF said in its World Economic Outlook report released today."
The Japanese stock market got off to a weak start on Wednesday with
investors indulging in some heavy selling, following a weak lead from
Wall Street where stocks tumbled overnight amid renewed worries about
the global economic outlook.With weak sales data for September
hurting sentiment, most of the stocks in the automobile space are
trading lower. Machinery, pharmaceuticals, steel, non-ferrous metals,
electric power and retail stocks too are trading weak.
Marc Faber vs Jim Rogers
Apple
On July 24, after the closing bell, Apple Inc.
AAPL
-0.36%
told analysts on a conference call that it expected to earn $7.65 per
share in its July-to-September quarter, a profit 25.5% below analyst
expectations at the time, according to FactSet. Apple has a history of
giving “conservative” estimates for quarterly results and then exceeding
those estimates. On July 25 the company’s stock fell sharply in
reaction to the guidance. Apple is expected to report results on Oct.
25.
Electronic Arts
In late July, Electronic Arts Inc.
EA
+0.19%
predicted it would earn 7 cents to 12 cents per share for the quarter,
compared with analyst expectations of 14 cents per share, according to
FactSet. The drop from 14 cents per share to 10 cents per share, which
is the midpoint of the range Electronics Arts gave, is 31.6%.The next
day the company’s shares fell. Electronic Arts is expected to report on
Oct. 25.
Netflix
On July 24, after the close of regular trading, Netflix Inc.
NFLX
-10.87%
reported better-than-expected earnings but gave a weak forecast for
subscriber growth and predicted a loss for the July-to-September
quarter. The company forecast that it could lose as much as 10 cents a
share or earn as much as 14 cents a share. The midpoint of that
forecast, a profit of 2 cents a share, was an 82.4% drop from the
analyst estimate at the time of 11 cents a share compiled by FactSet.
Netflix will report results on Oct. 23.
Applied Materials
Applied Materials Inc.
AMAT
-1.00%
on Aug. 15 issued a forecast for earnings per share for the
July-to-September quarter of 0 cents to 6 cents per share. The midpoint
of that forecast, 3 cents a share, was 74.6% below the average estimate
of analysts compiled by FactSet. Applied Materials is expected to report
results on Nov. 15.
Big Lots
On Aug. 23, Big Lots Inc.
BIG
-1.18%
reported a 38% drop in quarterly profit and said its same-store sales
fell, while expenses rose. The company slashed its full-year profit
outlook, saying it expected a profit of $2.80 to $2.95 for the year.
That was down from analyst expectations of $3.30 per share and the
company’s own forecast of $3.25 to $3.45 per share. The company’s shares
fell more than 20% after the announcement. Big Lots is expected to
report quarterly earnings on Nov. 29.
Peabody Energy
On July 24, Peabody Energy Corp.
BTU
+5.70%
reported a 30% drop in profit and gave a much weaker-than-expected
outlook. The company said it expected earnings between 20 cents and 45
cents per share, 49.9% below the analyst estimate at the time of 65
cents per share, according to FactSet. Peabody is expected to report on
Oct. 23.
Nucor
On Sept. 18, Nucor Corp.
NUE
+0.43%
said it expected its earnings per share to come in between 30 cents
and 35 cents per share. The midpoint of that forecast, 33 cents, was
22.4% lower than the average analyst forecast at the time, according to
FactSet. Nucor will report its quarterly results on Oct. 18.
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