U.S. Morning Call: Apple drags U.S. stock futures down
Thursday, January 24, 2013 - 04:15
Jan 24 - A number of brokerages cutting their price target on Apple after the tech giant missed Wall Street's revenue forecast.
▲ Hide Transcript
▶ View Transcript
Did your morning -- Thursday let's start with US stock futures are pointing to losses at the open. And that they have a lot to do apple will fill you in next on that. I'm the macro front we're expecting weekly jobless claims data which is likely to remain the same at 355000. Not to apple and its third straight earnings Smith shares of the company trading at 469 in premarket. The stock fell 10% to 463. Right after the results. Wiping out some fifty billion of its market value. That's really equivalent of that HP and -- combined. Critical gross margins split sharply. Many analysts are slicing price target among Barkley is paring its target to 575. From 740. And -- end shopping at 516 from 800. And of course some investors expressing doubt about Apple's continued dominance in Smartphones and tablets. I -- sales came in below expectations and revenues were off. Looking ahead apple faces fierce competition from cheaper phones although I pats held around the corner. On the brighter side iPhone sales more than doubled in greater China. Our region apple CEO Tim Cook has back out to focus on at its next big growth driver. This is a company that rose literally from the ashes in the late ninety's. And there in a really great spot it -- of cash tons of cash a lot of money to invest in -- indeed. And when they come out with something that's completely new. It will be really good. In other stocks to watch this morning take a look at Netflix a number of brokerages including Barclays raising its price target on the stock this morning. Shares up 37%. In the premarket trading near 141. Dollars. Netflix streaming toward success after reporting a surprise profit in the holiday quarter. The video service added nearly four million customers in the US and abroad. And forecast another one point seven million in the first three months -- 2013. Activist investor Carl Icahn who holds it almost 10% stake in Netflix. Has seen about -- he shares increased by 445. Million to nearly 769. Million. Since it started buying them in September. Also on our radar SanDisk. The stocks down a little in the premarket after the company offered -- modest revenue outlook. Disappointed investors were looking for a rebound in memory chips widely used in Smartphones cameras and tablets. Last year apple accounted for almost 13% of semantics. And discs business. Never earnings it's one of the busiest days of the season we've got a number of companies reporting including Xerox Starbucks in three and you can see the analysts' estimates right there. Take a look at Microsoft which is expected to post to decline in profit when it reports after the bell. The world's largest software maker now to wow holiday shoppers with its new windows eight system. PC sales actually fell about 6% during the quarter executives say slew of new touch and the windows devices like the surface. We'll win over skeptics in the months ahead investors not so sure. The company's stock has dropped more percent since the launch of windows eight in October. Lockheed Martin results at an hour ago the company reported a 19% drop in fourth quarter profit. But the Pentagon's biggest supplier remains bullish forecasting higher earnings for the full year despite weakening sales. Lockheed -- outlook assumes the US congress -- 500 billion in additional spending cuts but it didn't take -- over the next decade starting in March. Editor -- opera Thursday we've got interviews from the World Economic Forum in Davos so keep watching. Follow us on Twitter at let it inside there and get more let us at Reuters dot com slash later. I'm Lisa Bernhard this is way.
Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code