Market Update 20th July 2010
Tech shares were battered this morning after bellwethers IBM and Texas Instruments reported disappointing earnings.
The Markets are waiting for the release of Goldman Sachs, Apple and Yahoo.
Stocks finished higher Monday, as an early string of positive earnings news countered a negative report on home builder sentiment.
However, after the bell results from IBM and Texas Instruments sent the market lower after hours.IBM Shares are down 6%
A member of the Dow 30, IBM reported weaker than expected revenues after it reported higher-than-expected profits and raised its profit outlook for the second half. IBM’s report was followed by Texas Instruments, which also missed analysts estimates.
Tuesday’s earnings reports come from a variety of big names,like Goldman Sachs sometimes viewed as a stock market proxy. Goldman will be examined carefully to see if its business suffered any reputational damage from the SEC case against it for its role in a mortgage-securities derivatives deal.
Goldman settled with the Securities and Exchange Commission last week and agreed to pay a $550 million fine. Investors will also be watching to see how the second quarter’s rocky markets impacted trading results.
Other companies reporting Tuesday morning include Pepsi, Harley Davidson
Johnson and Johnson also reports tonight. Late Monday, the company revealed that regulators found problems at a third manufacturing plant. J & J has recalled several over-the-counter medicines, due to issues at two other plants.
Tech darling Apple reports after Tuesday’s bell. Apple shares slumped Monday on worries about its margins and concerns that the rival Droid phone is making gains, as it defends its i-Phone for faulty antennas.
Economic reports Tuesday for June housing starts, which are expected to be a very weak number.
Thursday will be followed by initial claims being released.
