Stocks futures are lower Tuesday morning, indicating U.S. stock markets will start on a down note following weak outlooks and disappointing financial results from several companies including Apple and American Express. With oil steady and no economic data out today, Wall Street will focus on earnings.Apple Inc. (NASDAQ: AAPL) reported after the close Monday a record quarter that beat analyst estimates, posting a 31% surge in earnings. Mac and iPod sales satisfied investors, while iPhone sales were somewhat on the lighter side. What concerned investors most was the very weak guidance Apple gave, which was weak even by Apple's standards of lowballing. Other issues included margin squeeze and Jobs health. Apple shares were 10% lower in Frankfurt and premarket trading.
American Express (NYSE: AXP), said late Monday its second-quarter results fell 38% due to the weakening economy. The company, which missed projections, caters to the more affluent who have good credit, and yet even this company felt the pains from the slowing economy. AmEx earned 56 cents per share compared to estimates of 83 cents per share. The company's stock tumbled AXP shares are down over 12% in premarket trading.
Also reporting Monday after the close were Merck & Co., Inc. (NYSE: MRK), Texas Instruments (NYSE: TXN) and SanDisk (NASDAQ: SNDK). MRK shares are down over 6.6% in premarket trading as the company said it would stop give guidance of results. TXN shares are also declining over 10.5% in premarket trading after it gave a disappointing forecast. SNDK shares are plunging over 16% in premarket trading after it swung to a Q2 loss, missing analyst estimates.
This morning we'll have another wave of earnings, and already started were DuPont and Wachovia.
DuPont Co. (NYSE: DD) said Tuesday agriculture sales and emerging markets helped fuel a rise in second-quarter profit to $1.08 billion, or $1.18 per share. Net sales rose to $8.83 billion. This beat expectations of $1.07 per share on revenue of $8.47 billion. While DuPont raised its 2008 outlook slightly, it expects earnings in the second half of this year to decline from a year earlier. DD shares are actually nearly 2% higher in premarket trading.
Meanwhile, Wachovia Corp (NYSE: WB) shares are down over 12% in premarket trading after the bank posted an $8.86 billion second-quarter loss and slashed its dividend for a second time this year. Wachovia's results missed analyst estimates.
Also, Caterpillar Inc (NYSE: CAT) said on Tuesday quarterly earnings rose 34% due to strong growth in emerging economies that offset weakness in North America, Western Europe and Japan. Sales rose 20%. The company handily topped Street estimates.
XM Satellite Radio Holdings Inc. (NASDAQ: XMSR) said its second-quarter loss narrowed. Earnings per share came in at 38 cents, better than the loss of 42 cents a share forecast by analysts polled by FactSet Research. Revenue climbed 15% as the satellite radio company posted a 17% increase in subscribers.
Halliburton Co. (NYSE: HAL) said net income dropped 67% after the sale of the company's stake in engineering unit KBR inflated 2007 earnings, ex-items, profit rose to 68 cents from 63 cents, matching the average of 22 analyst estimates compiled by Bloomberg.
Reporting after the close are after the close, Yahoo (NASDAQ: YHOO), United Parcel Service (NYSE: UPS) and Washington Mutual (NYSE: WM).
In non-earnings news:
- Bush Prods Congress, as Financers Are Inspected - Treasury Secretary Henry M. Paulson Jr. said examiners are inspecting the books of Fannie Mae and Freddie Mac.
- GM, utilities team up on electric cars - Partnership aims to tackle issues that will crop up when electric vehicles are rolled out.
- H&R Block names McDonald's executive CEO
- Ford to Make Broader Bet on Small Cars - After two decades focused on trucks, the company is about to drastically shift focus to building smaller cars.
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