Investors Digest Earnings and Await Fed Statement

Nichole Harper
30 Oct, 2013
New York City

U.S. stocks wavered ahead of Fed policy statement and focused on earnings. Comcast third quarter revenues declined 2.4%. General Motors quarterly revenues rose 4%. Western Union reported a fall in earnings. LinkedIn sales failed to meet expectations set by analysts.

[R]1:45 PM New York – U.S. stocks wavered ahead of Fed policy statement and focused on earnings. Comcast third quarter revenues declined 2.4%. General Motors quarterly revenues rose 4%. Western Union reported a fall in earnings. LinkedIn sales failed to meet expectations set by analysts.[/R]

U.S. stocks were on the defensive and wavered near the four-year high ahead of Fed policy statement at the end of two-day meeting.

S&P 500 index declined 2.84 to 1,769.11 and the Nasdaq Composite Index fell 14.32 to 3,938.01.

In European markets, FTSE 100 index in London rose 0.1% or 9.90 to 6,785 and in Frankfurt the DAX index slid 0.1% or 4.39 to 9,018.

In Paris, CAC 40 index fell 0.1% or 5.58 to 4,273.

In Asia, Nikkei in Tokyo gained 1.2% and in Hong Kong Hang Seng index soared 2% and in Mumbai Sensex index jumped 0.5%.

U.S. Stocks in Review

Ameriprise Financial, Inc. ((AMP)) jumped 2.1% or $2.40 to $101.79 after the financial service provider reported net revenues in the third-quarter ending in September climbed 14% to $2.8 billion. Net income in the quarter surged 120% to $382 million or $1.86 a diluted share compared to $173 million or 79 cents.

Comcast Corporation ((CMCSA)) slipped 1.2% or 56 cents to $47.15 after the entertainment, and communications service provider revenue in the third-quarter ending in September dropped 2.4% to $ to $16.2 billion.

Net income in the quarter plunged 18% to $1.73 billion or 65 cents a diluted share compared to $2.11 billion or 78 cents.

Revenue in the third quarter for cable communications jumped 5.2% to $10.5 billion and combined video, high-speed internet and voice customers increased climbed 14.9% to 337,000.

The company said revenue in the quarter from NBCUniversal segment declined 14.2% to $5.9 billion and revenue from the cable networks segment increased 4% to $2.2 billion.

Comcast added revenue from its broadcast television segment plummeted 41% to $1.6 billion and Filmed Entertainment segment revenue rose 3.3% to $1.4 billion. Theme parks revenue soared 7.9% to $661 million.

Electronic Arts ((EA)) soared 8% to $25.81 after the second-largest video game publisher was recommended by stock analyst Sean McGowan at Needham & Co.

General Motors Corporation ((GM)) climbed 3.6% or $1.46 to $37.52 after the automobile company said revenues in the third-quarter ending in September grew 4% to $39 billion.

Net income in the quarter plunged 41% to $0.7 billion or 45 cents a diluted share compared to $1.5 billion or 89 cents.

LinkedIn Corporation ((LNKD)) plunged 7% or $13.66 to $233.48 after the professional network service provider reported total revenues in the third-quarter ending in September soared 56% to $393 million. Net in the quarter swung to a loss $3.4 million or 3 cents a diluted share compared to a profit of $2.3 million or 2 cents.

Hess Corporation ((HES)) declined 3.8% or $3.19 to $80.42 after the energy company stated revenues in the third-quarter ending in September plummeted 23% to $2.7 billion. Net income in the quarter tumbled 25% to $420 million or $1.23 a diluted share compared to $557 million or $1.64.

Western Union Co. ((WU)) plunged 11% to $17.10 after the largest money transfer services provider reported a decline in third-quarter income on higher investment linked to new regulatory demands.

The company is also facing rising challenges from new online only transfer services providers like PayPal and Xoom and others that offer similar services at 90% cheaper prices.

Yelp, Inc ((YELP)) dropped 5% to $63.83 after the local business review site operator reported larger than expected losses.