Coca-Cola Co. is set to release its 3rd-quarter results before the session start on Tuesday. The biggest non-alcoholic beverage company by market-capitalization in the US, and a member of the Dow Jones Industrial Average since 1987, is seen reporting earnings of 53 cents per share for the quarter that ended on 30 September, down from 54 cents a share in the same period a year earlier. Analysts are looking for Q3 sales of $12.12 billion, up from $12.03 billion year ago. Coca-Cola shares gained 0.9% in the session so far.
The iPhone maker is considering the possibility of offering its Beats Music streaming service for $5 per month, Recode reported, citing sources familiar its plans. Beats Music is currently offered at $10 a month. Apple finalised its $3 billion Beats acquisition in August, and it made no indication what it had planned for Beats Music, but the service is still operating. Recent reports have suggested that Apple could do everything from scrapping Beats Music entirely to simply changing it.
IPhone 6’s bendgate controversy continues with another incident that’s not going to help build its reputation. US citizen Phillip Lechter described in a blog post a shocking accident where his brand new iPhone bent and caught fire in his front pocket during a rickshaw accident. The man said this lead to a 2nd degree burn on his right leg.
Apple’s CEO Tim Cook loves to talk about the improved security of Apple Pay. The mobile-payments system won’t collect information about what people buy – and it’s designed to ensure no one else can, either. Merchants have reasons to be excited about Apple Pay, which rolls out today at some 220,000 shops and restaurants. But some retailers are less than excited namely because of Apple’s anonymous infrastructure. Analyst at Forrester Research even said that Apple’s approach to customer data is one of Apple Pay’s biggest shortcomings.
Shares of Tesla Motors edged upward by 1.6% in today’s trading so far, as the company said it will open its own shop on TMall – online marketplace owned by Alibaba Group. The move should boost Tesla’s positions with Chinese consumers.
Twitter Inc. agitated app developers a couple of years ago as it tightened up the rules around applications that plug into the social-media network. The micro-blogging company now wants to revive its relationship with developers, and plans to host its first developer conference in 4 years to try and lure more app makers.
McDonald’s prices in the US were up about 3% through the end of June compared with 12 months earlier. That’s more than the 2.5% gain in prices for food Americans purchased away from their homes in the year through August, according to data by the Bureau of Labour Statistics. McDonald’s hasn’t offered enough discounts and deals to attract diners, which contributed to its 4 straight months of US same-store sales decreases, UBS reported this month.
Advance in shares of Apple and consumer companies overshadowed the slump in IBM’s stock after withdrawing 2015 profit forecast. Apple Inc. advanced 1.7% in anticipation of its quarterly results after markets close today. Shares of IBM, the second-biggest component in the Dow Jones Industrial Average as of last week, is down little above 7% at last check as it struggles to transform quickly enough to cope with a shift to cloud computing.
Shares in International Business Machines Corp. (IBM) fell the most in more than 4 years after abandoning an earnings forecast for next year, as the company struggles to transform fast enough to handle the shift to cloud computing. IBM said it will release an update on its projections in January, ditching a 5-year plan to increase profit. The shares tumbled as much as 8.4%, dragging down the Dow Jones Industrial Average contracts. Warren Buffett, the major shareholder in IBM, had as much as $1 billion of his investment wiped out.
The high-resolution Kindle Voyage is a huge design upgrade for Amazon and it offers a higher-quality screen, which comes closer than ever to actual ink on paper. It’s an undoubtedly polished device and its $119 price tag shows it. One significant plus that’s new to the Voyage is “PagePress,” which lets users turn pages by squeezing specific areas of the device’s side bezels.
According to data released today ahead of Apple’s imminent earnings release, the smaller iPhone 6 is outselling the 6 Plus phablet by a 6-to-1 margin. But interestingly, iPhone 6 Plus owners are using apps more and longer. The iPhone 6 is being adopted at twice the rate of Apple’s previous flagship model, the 5s, Localytics data suggests, and now makes up 6% of all iPhones on the market. Its bigger version, the 6 Plus, makes up 1% of all iPhones in current use. That’s also significant as it happens just a month after the release date.
With its new Safari 8 browser built into its OS X 10.10 Yosemite operating system, Apple delivered on its promise for a significant boost in browser performance, says experts. On two new speed tests Apple introduced in 2014, called JetStream and Speedometer, Safari leaped over Google's Chrome, Mozilla's Firefox, and Opera Software's Opera. On a third test, called JSBench, the one Apple mentioned explicitly last week as it announced the release of Yosemite, Safari far outpaced its rival browsers. But on two other tests, Google's Octane and Mozilla's Kraken, Safari lagged.
King Digital Entertainment PLC said today that “Candy Crush Soda Saga,” the sister title to the digital game “Candy Crush Saga,” has launched on Facebook and will launch on mobile devices in the coming weeks.
Microsoft Corp. is due to post its fiscal first-quarter results after the close of trading on Thursday. Analysts projected earnings of 50 cents a share for the quarter that ended in September, less than 62 cents a share during the same period a year ago. Microsoft is forecast to report $22.01 billion in revenue, which would be a 19% increase over the sales of $18.53 billion it reported in the same period a year ago.
The British pound advanced to a 1-week high versus the US dollar after reports showed UK home prices gained for a second month in October and consumer confidence surged. On the other hand, UK’s government bonds rose for the first time in 3 days as Barclays pushed back its forecast for the Bank of England’s first interest-rate hike since 2007 to February from November.
International Business Machines Corp. (IBM) posted sharply lower earnings in its third quarter as sales fell across several divisions and the tech giant unveiled a deal to transfer its semiconductor operations to Globalfoundries Inc. "We are disappointed in our performance," Chief Executive Ginni Rometty said. "We saw a marked slowdown in September in client buying behaviour, and our results also point to the unprecedented pace of change in our industry." IBM has now failed to generate a revenue increase for 10 straight quarters. Shares fell more than 8.5% after the session’s start.
The European Central Bank (ECB)’s unprecedented inspection of lenders’ books across the eurozone will help end a decline in lending that has afflicted southern Europe for years, said executives at some of the currency bloc’s largest banks. ECB President Mario Draghi is using the yearlong review to restore confidence in the financial system before taking over banking supervision in November.
French Economy Minister Emmanuel Macron has called on Germany to spend an additional EUR 50 billion on investments over the next 3 years to help the European economy, according to comments cited by the Frankfurter Allgemeine Zeitung.
Dallas Fed President Richard Fisher said today that he will support ending the central bank's bond-buying program on schedule next week. In an interview, Fisher said he was not troubled by last week's market volatility and did not think US inflation was trending lower. Fisher is one of the most hawkish Fed presidents and a voting member of the policy committee this year. In other comments, Fisher said he didn't think that fear of the Ebola virus had impacted the Texas economy. The lower crude prices would also not lead to a slowdown in his Fed district, he said.
Yahoo Inc. is scheduled to report its 3rd-quarter results after the end of regular session Tuesday. Analysts estimate Yahoo will earn 32 cents a share, excluding one-time items, compared with a profit of 34 cents a share a year ago. Yahoo is forecast to report revenue, excluding traffic-acquisition costs, of $1.05 billion, compared with $1.08 billion in the 3rd quarter of 2013. Analysts may look for hints from CEO Marissa Mayer at what Yahoo plans to do with the proceeds from the initial public offering of Alibaba.
The pre-market drop in IBM shares following disappointing 3rd-quarter results turned the Dow Jones Industrial Average negative in the last half hour. IBM's stock fell 8.4% to $166.69 a share after the early earnings release, and this pushed contracts on Dow Jones Industrial Average down 1% to 16,198 points.
Starting today, Apple Inc. will begin its bold endeavour to provide mobile wallet together with its latest smartphones iPhone 6 and 6 Plus, as well as upcoming Apple Watch. The iPhone already has replaced many once-independent devices, including cameras and GPS navigation systems. Now, Apple’s new payment service will enable shoppers to buy items at stores or inside applications via an iPhone and using a thumbprint. Still, only a minority of retailers have machines capable of reading the near-field communication radio signal that makes Apple Pay work. Apple has signed up the 6 biggest card issuers, with 500 financial institutions coming by early next year.
Germany will likely avoid a recession, a monthly bulletin by the country’s central bank – Deutsche Bundesbank – suggested today. The bank said that industrial production probably was a drag on growth in the 3rd quarter, but consumer spending rebounded. This means the economy either was flat in the 3rd quarter or even grew a little, the bank said.
IBM said it will sell its global semiconductor technology business to Globalfoundries in order to focus on fundamental chip research and systems innovation. Under terms of the deal announced today, IBM will pay $1.5 billion in cash to Globalfoundries over the next 3 years. The deal also stipulates that Globalfoundries will become IBM's exclusive server processor and semiconductor technology provider for 22, 14 and 10-nanometer semiconductors for the next 10 years. Shares of IBM rose 1% in pre-market hours.
Shares of German sportswear giant Adidas surged 7.6% to EUR 58.53 a share today after a media report that a group of investors was considering to make an offer to buy the company's Reebok brand. The Wall Street Journal wrote that Hong Kong's Jynwel Capital and investment funds in Abu Dhabi were considering a proposal worth $2.2 billion. The news gave a boost for the German company's slipping share price, down about 40% this year.
International Monetary Fund (IMF) head Christine Lagarde said Friday that markets may be over-reacting to concerns about the global economy. Stock markets have fluctuated wildly this week with sharp losses on Wednesday, before a partial recovery on Friday.
Today’s strike of Lufthansa’s pilots, which affected mostly European flights, has been expanded to include long-haul destinations on Tuesday. Pilots on short-haul routes are due to strike from midday Monday for 35 hours, causing the cancellation of 1,450 flights. The German pilots are protesting against plans to alter retirement and pension terms.
Microsoft is readying to launch a smartwatch in the next couple of weeks, in time for the holiday shopping season, according to a Forbes report. The tech giant’s device was said to have health-tracking capabilities and battery lasting more than 2 days with regular use, according to cited unidentified sources. The smartwatch will reportedly be capable of working across multiple mobile operating systems such as iOS and Android.
Japan's new trade and industry minister quit over a funding scandal today and the justice minister resigned after being accused of violating electoral laws. That is the biggest setback for the Prime Minister Shinzo Abe since he took office in 2012. The resignations of the two ministers could complicate difficult decisions on key issues, including whether to continue with an unpopular plan to lift the national sales tax and planned restarts of nuclear reactors that were shut down after the Fukushima disaster in 2011.
Russia’s credit rating was lowered to Baa2 (the second-lowest investment grade) from Baa1 with negative outlook by Moody’s Investors Service on Friday, based on sluggish growth prospects and an erosion of the country’s reserves following Western sanctions over Ukraine. Moody’s reduction is in line with Fitch Ratings’ credit grade on the country and one step above Standard & Poor’s, which cut its rating on Russia to BBB- in April.
Apple Inc. is due to release its fiscal 4th-quarter results after the close of today’s regular trading on Wall Street. Analysts estimate to see earnings of $1.31 a share, compared with a profit of $8.26 ($1.18 split adjusted) a share in the same period a year earlier. Apple is expected to announce sales of $40 billion for the quarter through September. Apple’s financial results come on the heels of a company event in which Apple showed off its new iPad Air 2 and iPad mini 3 tablets. Analysts and investors will also wait for comments about the iPhone 6’s market share against rivals.
Yahoo Inc. is expected on Tuesday to announce cost-cutting measures and give details of how it is evaluating possible acquisitions as it faces pressure from a major investor, the Wall Street Journal wrote, citing a source familiar with the plan. Yahoo is considering purchasing one or more large technology start-ups with some of the 5.8 billion dollars it made from the initial public offering of Alibaba Group, the source said.
Gold prices remained steady today, and began the week just a bit lower, as a number of quarterly reports, including more than a third of the Dow companies, will probably influence equities trading this week. Over the last minutes, spot gold was up 0.4% to $1,242.77 an ounce. In the previous session, gold fell due to a huge equities push.
The strong decline in the stock prices of the popular sports HD cameras producer GoPro Inc. continued last week after a French journalist suggested the Formula 1 legend Michael Schumacher's injuries in a ski accident last year might have been caused by a wearable camera made by the company. Although the journalist later clarified in a series of tweets that he had only claimed his personal opinion, GoPro's stock went down nearly 20% and closed at $74.50 per share last week. The company said it was considering several options, including the possibility of civil action against the reporter. The stock tumble happened amid а widespread market turmoil due to rising concerns about a slowdown in global economic growth.
Today Metro AG reported a 2.6% fall in quarterly sales due to a strong euro and asset disposals, but said it plans to meet this year’s targets. Third-quarter sales decreased to EUR 15.1 billion from EUR 15.5 billion in the same period last year, which was in line with analysts' expectations. When adjusted for currency effects, sales increased 1.8%. There was a 4% decrease in sales since the beginning of the year, down to EUR 63 billion. The company confirmed its group earnings before interest and taxes guidance, amounting to around EUR 1.75 billion.
The German producer prices index preserved its downward movement in September, due to falling energy prices, according to the official data released today. Energy prices were the main reason for the result, according to Destatis, as they were 3.8% below their September 2013 level. Without their impact, producer prices would have increased 0.1% in September from the year-earlier month.
SAP AG cut its profit outlook for 2014 today despite the reported 15% rise in net earnings in the third quarter, achieved thanks to an increase in subscriptions for cloud-based software products. The company expects its full-year operating profit to be between EUR5.6 billion to EUR5.8 billion, versus a previous forecast of EUR5.8 billion to EUR6 billion. SAP is refocusing on cloud-based software technology. It uses its own accounting method rather than the international financial reporting standards.
International Business Machines Corp. (IBM) will pay Globalfoundries Inc. $1.5 billion to take an unprofitable chip-making unit, sources claim. IBM will get $200 million worth of assets, thus making the deal’s net value $1.3 billion. Details will probably be announced today. Yesterday IBM published a statement saying a “major business announcement” will be released today.
• Аt 10:00 GMT today, Germany’s central bank – the Deutsche Bundesbank, will release its monthly report, and any surprises in it could influence the euro and the German stock futures.
• Apple Inc. is scheduled to release its fiscal fourth-quarter results after the close of trading Monday. Analysts estimate earnings of $1.31 per share, compared with a profit of $8.26 ($1.18 split-adjusted) a share for the same period a year ago. Last year’s results were released before the 7-for-1 stock split enacted by Apple on June 9.
• International Business Machines Corp (IBM) will also announce its earnings report after the regular session.