Wednesday, April 16, 2014

Earnings parade continues with Google, IBM, BofA

With the stock market teetering lately, it will take strong earnings reports from bellwether companies and signs of life in the economy for stocks to break their recent negative karma.

Investors have a full slate of earnings and data to watch Wednesday. For "tech heads," or aggressive investors who focus on the suddenly fragile Nasdaq composite, earnings from search-engine behemoth Google (analysts are looking for earnings of $6.40 per share, according to Thomson Reuters) and blue-chip tech titan IBM (estimate is $2.54 per share) are the biggies.

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Earnings "beats" would go a long way to stabilize the Nasdaq, which

went on a roller coaster ride Tuesday

. The Nasdaq finished up 0.3% to 4,034.16, after an early 1.8% slide that put it within 1 percentage point of a "correction," or a drop of 10%. The late-day comeback left it down 7.4% from its March 5 high and 3.4% lower for the year.

After the closing bell Tuesday, Internet play Yahoo and chip maker Intel both reported solid earnings, with both companies topping analysts' earnings-per-share estimates by a penny. In after-hours trading Yahoo shares were up 10% and Intel 3%.

Bank of America also reports its first-quarter profits Wednesday. Wall Street is expecting the bank to post earnings of 5 cents a share.

Investors also want to see economic data pick up after a nasty winter. Wednesday they will get fresh readings on March housing starts and industrial production.

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